Assume the following information: Current spot rate of Thai baht I = $0.029 Forecasted spot rate...
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Assume the following information: Current spot rate of Thai baht I = $0.029 Forecasted spot rate of Thai baht 1 year from now = $0.027 1-year forward rate of Thai baht = $0.028 Annual interest rate for Thai baht deposit = 10.80% Annual interest rate in the U.S. = 6.20% Given the information in this question, the return from covered interest arbitrage strategy by U.S. investors with $2,000,000 to invest is %. Assume the following information: Current spot rate of Thai baht I = $0.029 Forecasted spot rate of Thai baht 1 year from now = $0.027 1-year forward rate of Thai baht = $0.028 Annual interest rate for Thai baht deposit = 10.80% Annual interest rate in the U.S. = 6.20% Given the information in this question, the return from covered interest arbitrage strategy by U.S. investors with $2,000,000 to invest is %.
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