Question: internstional finance answer question 4 and 5 please Accessibility Mode Print Immersive Reader Problem 4: (10 points) Suppose that the annual interest rate is 3

internstional finance answer question 4 and 5 please

Accessibility Mode Print Immersive Reader Problem 4: (10 points) Suppose that the annual interest rate is 3 percent in the United States and 6 percent in Germany. and that the spot exchange rate is $1 = 0.88 and the one-year forward exchange rate is SI = 0.885 . Assume that an arbitrager can borrow up to $2,000,000 or 1,760,000 . If an astute trader finds an arbitrage, how much profit does he make? Problem 5: (6 points) Suppose that the annual interest rate is 6 percent in the United States and 8 percent in Vietnam, and that the spot exchange rate is S1 = 23,000 VND. What would be the one-year forward exchange rate? Problem 6: (8 points) GIVE FEEDBACK TO Ashmita Khasnabish (Ph.D.)

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