Question: step by step instructions on how to do questions 1-4 If more then one choice seem like the right answer, please select the one which

 step by step instructions on how to do questions 1-4 If
step by step instructions on how to do questions 1-4

If more then one choice seem like the right answer, please select the one which you think is the "best" 1) You have access to $200,000. One year interest rate in USA : 4%; One year rate in Mexico. 9%. Spot rate for Peso : $1.50/Peso ; One year forward rate: $1.41/Peso. Use this data to answer the following four questions: What is the Covered rate of return from USA point of view? a) 3.88% d)5% al- b)1.73% 46% @What is the covered rate of return from the Mexican point of view ? b)8.28% c)5.91% d)13.22% row in--and ilnves Mexico USA; Mexico Re :G+)(1-09-1 a) Mexico USA 4) How much is your covered arbitrage profit ( in US dollars)? a)$4487 b)S2156 c)S3276

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