Given the following information: Spot rate of Swiss Franc .$ 0.80 The forward rate of Swiss Franc

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Given the following information: 

Spot rate of Swiss Franc ………………………………………………………………….$ 0.80

The forward rate of Swiss Franc …………………………………………………..…$ 0.79

The interest rate on Swiss Franc deposits………………………………………….  4 %

The interest rate on US dollar deposits…………………..…………………….…. 2.5 %


what rate of return can be earned on $1m from covered interest arbitrage? Is it a worthwhile undertaking?

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