Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you have 1,000,000 to invest current spot rate of

You have 1,000,000 to invest Current spot rate of dollar = 0.54 90-day forward...

90.2K

Verified Solution

Question

Finance

You have 1,000,000 to invest

Current spot rate of dollar = 0.54

90-day forward rate of dollar = 0.53

1 year deposit rate in US = 4%

1 year deposit rate in UK = 3%

If you use covered interest arbitrage for a 1 year investment, what will be the amount of pounds you will have after 1 year?

1,020,740

1,045,600

1,073,330

1,094,230

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

WORLDCOM, A failure of Professionalism and Integrity

Physics
1.2K views

Example 3 A rod AB of length 5 cm lies along the principal axis of...

Physics
1.2K views

Calculate the net force on particle q1 Finally add the forces together to find the...

Geometry
1.2K views

Find the slope of the line 10 110 m 10 10 x Enter your answer...

Geometry
1.2K views

Karamjit makes sure that every employee is recognized on their birthday The staff will gather...

Statistics
1.2K views

Facebook A study showed that two years ago the mean time spent per visit to...

Calculus
1.2K views

Assume that z and y represent positive real numbers Using the distributive property to help...

Algebra
1.2K views

A family has a $98,162, 30-year mortgage at 6.3% compounded monthly. Find the monthly payment....

Accounting
1.2K views

The most important them in this course is the accounting cycle. Your accounting project is...

Accounting
1.2K views

Rockwell Corporation uses a periodic inventory system and has used the FIFO cost method since...

Accounting
1.2K views

Quatro Company issues bonds dated January 1, 2021, with a par value of $900,000. The...

Accounting
1.2K views

Blue Corporation was formed 5 years ago through a public subscription of common stock. Daniel...