Question: Table #1 Funds available for arbitrage $4,000,000 US interest rate 6% Mexico interest rate 4% Spot rate Ps 19.7812/$ 90-day Forward Rate Ps19.2131/$ Investment for


Table #1 Funds available for arbitrage $4,000,000 US interest rate 6% Mexico interest rate 4% Spot rate Ps 19.7812/$ 90-day Forward Rate Ps19.2131/$ Investment for 90 days Question 6 1 pts By using data from Table #1 find the forward premium on Foreign Currency in % (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 4 decimal places. For example, 0.1234567 or 12.34567% should be entered as 12.3457.) By using data from Table #1 find the CIA profit potential in %. (Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 4 decimal places. For example, 0.1234567 or 12.34567% should be entered as 12.3457.) Question 8 1 pts By using data from Table #1, find the total proceeds (principal + interest income) of the investment for 90 days in Peso. (Round to the nearest Peso). By using data from Table #1, find the total opportunity cost of capital (Hint: find proceeds of 90- day investment in USD: principal + interest income). (Round to the nearest Dollar) D 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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