Question: PLEASE SHOW WORK You can borrow U.S. $ at 4.75% A.P.R. and Investat 3% A.P.R with Bank of America for 1 year. You can borrow
You can borrow U.S. $ at 4.75% A.P.R. and Investat 3% A.P.R with Bank of America for 1 year. You can borrow Cat 5.25% A.P.R. and Invest at 2.5% APR with Credit Suisse for 1 year, UBS is offering the following quotes: S(SIC)=1.82 and S*($10)-1.8. F12 (S/C)-1.315 and 712/C)=1.545. The forward bid-ask spread at which the Bank/Dealer is indifferent between investing in U.S. Sorcs 1. F1gb ( 1.850 F12 5/6 - 1.8815 2. Figb(0-1.7811: F12 (80 - 1.8815 3.-1.8005; (50 -1.7811 4.0 - 1.8113; F50 - 15412 You can borrow U.S. $ at 4.75% A.P.R. and Investat 3% A.P.R with Bank of America for 1 year. You can borrow Cat 5.25% A.P.R. and Invest at 2.5% APR with Credit Suisse for 1 year, UBS is offering the following quotes: S(SIC)=1.82 and S*($10)-1.8. F12 (S/C)-1.315 and 712/C)=1.545. The forward bid-ask spread at which the Bank/Dealer is indifferent between investing in U.S. Sorcs 1. F1gb ( 1.850 F12 5/6 - 1.8815 2. Figb(0-1.7811: F12 (80 - 1.8815 3.-1.8005; (50 -1.7811 4.0 - 1.8113; F50 - 15412
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