This is the same fact pattern as the previous question: Casper Landsten is a foreign...
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Accounting
This is the same fact pattern as the previous question:
Casper Landsten is a foreign exchange trader who has access to $1 million (or its Swiss Franc equivalent). Assume the spot exchange rate is 1.29 SFr/$ and the 3-month forward rate is 1.285 SFr/$. Also assume that the US dollar 3-month interest rate (annualized) is 4.5% and that the Swiss franc 3-month interest rate (annualized) is 3.2%.
How much profit will Landsten make?
Group of answer choices
$702.94
$8,984.44
$672.18
$0.00
$7,156.98
$11,922.18
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