Moving to another question will [10 marks] Suppose you are given the following exchange rates and one-year interest rates. You have $100,000 to invest for one year. Would you bonefit from engaging in covered interest arbitrage? Justify your answer and show the steps of calculations. Bid Quote Ask Quote Euro spot $1.04 $1.05 Euro-1-year forward $1.04 $1.05 Deposit rate Loan rate Interest rate on dollars 5% 8% Interest rates on euros 5.5% 3.5% For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) % 6 Question 6 $ A R 5 T 7 & 7 y U * 8 144 9 (hp F10 11 prt sc delete backspace 10 points home Save Answ num Moving to another question will [10 marks] Suppose you are given the following exchange rates and one-year interest rates. You have $100,000 to invest for one year. Would you bonefit from engaging in covered interest arbitrage? Justify your answer and show the steps of calculations. Bid Quote Ask Quote Euro spot $1.04 $1.05 Euro-1-year forward $1.04 $1.05 Deposit rate Loan rate Interest rate on dollars 5% 8% Interest rates on euros 5.5% 3.5% For the toolbar, press ALT+F10 (PC) or ALT+FN+F10 (Mac) % 6 Question 6 $ A R 5 T 7 & 7 y U * 8 144 9 (hp F10 11 prt sc delete backspace 10 points home Save Answ num