10. You have $1,000,000 to invest: Current spot rate of pound 90-day forward rate of pound...
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10. You have $1,000,000 to invest: Current spot rate of pound 90-day forward rate of pound 3-month deposit rate in U.S. 3-month deposit rate in U.K. = $1.60 = $1.57 3% 11 4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days? A) $1,020,500. B) $1,045,600. C) $1,073,330. D) $1,094,230. 10. You have $1,000,000 to invest: Current spot rate of pound 90-day forward rate of pound 3-month deposit rate in U.S. 3-month deposit rate in U.K. = $1.60 = $1.57 3% 11 4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days? A) $1,020,500. B) $1,045,600. C) $1,073,330. D) $1,094,230.
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