Question: Show your transactions for covered interest rate arbitrage based on the following information. Indicate your dollar profits realized from these transactions at maturity. Assume the

Show your transactions for covered interest rate arbitrage based on the following information. Indicate your dollar profits realized from these transactions at maturity. Assume the LIBORs represent either borrowing or lending rates.

S$/ = 1.3000

F$/(6 month)=1.2900

6-month LIBOR_$ = 2%

6-month LIBOR = 4%

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