dulvedalvarez4402 dulvedalvarez4402

25-01-2024
Business

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You have $1,000,000 to invest: Current spot rate of pound=$1.60 90-day forward rate of pound=$1.57 3-month deposit rate in U.S.=3% 3-month deposit rate in U.K.=4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

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