An investor has $10,000 to invest; the current spot rate of British pounds is $1.800.The three month

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An investor has $10,000 to invest; the current spot rate of British pounds is $1.800.The three month forward rate of the pound is $1.780.The annual interest rate in the US is 4%; the annual interest rate in the UK is 6%.

Demonstrate if there are any profit opportunities through triangular arbitrage.

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Global Investments

ISBN: 978-0321527707

6th edition

Authors: Bruno Solnik, Dennis McLeavey

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Posted Date: Jul 13, 2023 02:28 AM

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An investor has $10,000 to invest; the current spot rate of British pounds is $1.800.The three month

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