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
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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