Question: Please need correct and short answer as soon as possible I will like your answer and really appreciate it thanks note ) pls if possible

Please need correct and short answer as soon as possible I will like your answer and really appreciate it thanks

note ) pls if possible write down on paper

Question 1 (10 marks) Takeshi Kamada, a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest $5,000,000 or its yen equivalent in a covered interest arbitrage between US dollars and Japanese yen. He faced the following exchange rate and interest rate quotes Assume: Arbitrage funds available Spot ratefyers) 180 day forward rate(yer/5) $5,000,000 118.60 117.80 180 day US dollar interest rate 180 day Japanese yen interest rate 48% pa 3.4% pa Required is covered interest arbitrage profit possible? Is so, How? 1101

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