Question: Given the information: Interest rate in US (Rh): Interest rate in UK (RI): The current spot rate for GBP (SR): 1-year forward rate for GBP

Given the information: Interest rate in US (Rh): Interest rate in

Given the information: Interest rate in US (Rh): Interest rate in UK (RI): The current spot rate for GBP (SR): 1-year forward rate for GBP (FR): 6% 4% $1.50 $1.52 Suppose your lines of credit are USD 15,000,000 in the US and GBP 10,000,000 in UK. If you set up a covered interest rate arbitrage, your covered interest arbitrage profit will be: GBP 300,000 USD 92.000 GBP 60,526 USD 200,000

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