Question: Table #1 Amount $3,000,000 US interest rate 7% Mexico interest rate 4% Spot rate Ps19.6512/$ 90-day Forward Rate Ps19.2131/$ Investment for 90 days Question 8

Table #1 Amount $3,000,000 US interest rate 7% Mexico interest rate 4% Spot rate Ps19.6512/$ 90-day Forward Rate Ps19.2131/$ Investment for 90 days Question 8 1 pts By using data from Table #1, find the total proceeds (principal + interest income) of the investment for 90 days in the currency according to the rule of thumb (this is the amount that you will sell forward). Question 9 1 pts By using data from Table #1. find the total opportunity cost of capital (Hint: find proceeds of 90-day investment in a second currency: principal + interest income). Question 10 1 pts By using data from Table #1, find the CIA profit (after accounting for the opportunity cost of capital: do not round intermediate calculations: Round your final answer to the nearest US dollar)

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