Question: Old MathJax webview 1st drop down: Swiss Francs or US Dollars 2nd: Higher or Lower 3rd: Swiss Franc or US Dollars 4th Swiss Franc or

Old MathJax webview

Old MathJax webview 1st drop down: Swiss Francs or US Dollars 2nd:

1st drop down: Swiss Francs or US Dollars

2nd: Higher or Lower

3rd: Swiss Franc or US Dollars

4th Swiss Franc or US Dollar

Casper Landsten-Thirty Days Later. Casper Landsten once again has $0.95 million (or its Swiss franc equivalent) to invest for three months. He now faces the following rates. Should he enter into a covered interest arbitrage (CIA) investment? $ Arbitrage funds available Spot exchange rate (SFr/S) 3-month forward rate (SFr/S) U.S. Dollar annual interest rate Swiss franc annual interest rate 950,000 1.3392 1.3286 4.748 % 3.623 % The CIA profit potential is %, which tells Casper Landsten he should borrow and invest in the yielding currency, the and then sell the principal and interest forward three months locking i CIA profit. (Round to three decimal places and select from the drop-down menus.)

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