Question: $o.5 Problems 6-9 million, or the foreign currency equivalent arbitrage with Denmark. Using the following quotes can Heidi ma Heid Hel lensen, foreign exchange trader
$o.5 Problems 6-9 million, or the foreign currency equivalent arbitrage with Denmark. Using the following quotes can Heidi ma Heid Hel lensen, foreign exchange trader at J.P. Morgan Chase, can invest covered interest of the bank's short term funds, in a ke 6. Cokrt t 1,925,546 a. 100,000 b. 706,654 c. 1,525,576 d. 876,000 e. 3,239,250 82,500,432h 4,674,000 5,099,655 j. 3,085000 7. D-kri a. 100,000 b. 706,654 c. 1,525,576 d. 876,000 e.3,239,250 1,925,546 82,500,432 h. 4,674,000 .5,099,655 j.3,085000 a. 100,000 b. 709,954 c.625,576 d. 876,000e. 3,239,250 8 2,500,432 h 4,674,000 L522,460 j.3,085000 f. 1,925,546 9.Profit/Loss a 6,586 b. 7,960 c. 15,576 d. 7460 e. 56,432 1,925,546 .2500000 h. 674,000 i.99,655 .s dellar interest rate (12-month) 3.000% S 500,000.00 1.0300 S? SE Spot (kr/Ss) 6.1700 360 days- Forward-360 (kr/S) 6.2000 1.0500 5.000% Danish kroner interest (1 2-Pmonth) idi Hei Jensen generates a covered interest arbitrage (CIA) proft because she is able to generate an even her interest return in Danish kroner than she "gives up" by selling the proceeds forward at the forward rate. 10. The Argentine peso was fixed through a currency board at Ps1.00/$ throughout the 1990s. During that one year period Argentina's inflation rate was 20% on an annualized basis. Inflation in the United States during that same period was 2.2% annualized. The PPP exchan Ps /US$ is a. 3.2 b. 1.17 c. 2.2 d. 4.1e.5.5 f.6.0 g.0.2 ge rate
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