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Assume the following information: You have 400,000 to invest Current spot rate of...

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Finance

Assume the following information:

You have 400,000 to invest

Current spot rate of Sudanese dinar (SDD) = 0.00317

1 year forward rate of the dinar = 0.00311

1 year interest rate in the UK = 4.0%

1 year interest rate in Sudan = 4.2%

If you conduct covered interest arbitrage, what amount will you have after 1 year to the nearest ?

416,000

424,841

424,242

408,911

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