The Swedish Krona is quoted at .0313-.0315 US$/Krona spot. 6-month forward contracts are quoted .0311-.0314. 6-month interest rates in the US (for both borrowing and investing) are at a 5% annual rate. What 6-month annual interest rate in Sweden for borrowing and investing would allow an arbitrage? 

a) 6%

b) 7% 

c) 8% 

d) All of the above 

e) None of the above

Answer rating: 100% (QA)

option D is correct All of above Explanation Now you s... View the full answer