Assume the following information You have $420,000 to invest Current spot rate of Sudanese dinar (SDD) =

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Assume the following information

You have $420,000 to invest

Current spot rate of Sudanese dinar (SDD) = $.00570

90-day forward rate of the dinar = $.00569

90-day interest rate in the U.S. = .04

90-day interest rate in Sudan = 0.044

If you conduct covered interest arbitrage, what amount will you have after 90 days?

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International financial management

ISBN: 978-0324593471

9th Edition

Authors: Jeff Madura

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Posted Date: Mar 08, 2024 12:18 AM

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Assume the following information You have $420,000 to invest Current spot rate of Sudanese dinar (SDD) =

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To calculate the amount you will have after 90 days using covered interest arbitrage we need to cons... View the full answer

International financial management

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