KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark Spot Rate =
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Question:
KBL Inc. with $20m funds available is seeking covered interest arbitrage (CIA) in Denmark
Spot Rate = 6.15 (Kr/$)
3-month forward rate = 6.20 (Kr/S)
3-Month interest rate in US = 2.75%
3-month interest rate in Denmark = 3.25%
The CIA profit potential is: ?
Related Book For
Fundamentals of Multinational Finance
ISBN: 978-0205989751
5th edition
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
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