Question: The following data is from 2 0 2 1 . Make sure that for all Exchange rates and Forward rates you USE 4 DECIMAL PLACES.

The following data is from 2021. Make sure that for all Exchange rates and Forward rates you USE 4 DECIMAL PLACES. All other answers you may round to 2 decimal places.
You are considering a Covered Interest Arbitrage (Carry Trade) between the US and Mexico over the next 90 days. The following data apply (all borrowing & lending rates are annualized). Note: Use 90/360 to convert to 90-day rates.
US: Lending rate =2.25%, Borrowing rate =2.75%
Mexico: Lending rate =6.35%, Borrowing rate =7.00%
Spot rate of Mexican Peso (MXN)= USD 0.047 per 1 MXN
90-day Forward rate quote =0.0478 USD per 1 MXN
Assume you have USD 1069633 in capital.
Part 1: You will borrow Blank 1. Calculate the answer by read surrounding text.
units of currency in the country from which you will borrow from over the next 90-days.
Part 2: You will lend Blank 2. Calculate the answer by read surrounding text.
units of currency in the country in which you will lend in for the next 90 days.
Part 3: You will be paid Blank 3. Calculate the answer by read surrounding text.
Mexican Pesos in 90-days.
Part 4: The number of Mexican Pesos from the previous Part will convert to Blank 4. Calculate the answer by read surrounding text.
USD.
Part 5: In 90-days you will owe Blank 5. Calculate the answer by read surrounding text.
USD.
Part 6: Your Profit in will be Blank 6. Calculate the answer by read surrounding text.
USD.
Part 7: Your 90-daypercent Return will be Blank 7. Calculate the answer by read surrounding text.
%
Part 8: The Forward rate at which your profit from this trade is zero equals Blank 8. Calculate the answer by read surrounding text.
USD per 1 MXN. Your answer should be with 4 DECIMAL PLACES.

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