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KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot...

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Accounting

KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate = 6.15 (Kr/$) 3-month forward rate = 6.20 (Kr/S) 3-Month interest rate in US = 2.75% 3-month interest rate in Denmark = 3.25% The CIA profit potential is:

Select one:

a. -3.23%

b. 0.81%

c. -2.73%

d. None of the Above

e. 0.50%

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