Question: U Dataset (5) Covered interest Arbitrage Amount $3,000,000 US interest rate 79 Mexico interest rate Spot rate Ps20.4500/$ 180-day Forward Rate Ps20.0015/$ Investment for 180

79 Mexico interest rate Spot rate Ps20.4500/$ 180-day Forward Rate Ps20.0015/$ Investment

U Dataset (5) Covered interest Arbitrage Amount $3,000,000 US interest rate 79 Mexico interest rate Spot rate Ps20.4500/$ 180-day Forward Rate Ps20.0015/$ Investment for 180 days 5% os By using data from Dataset (5) find the total procedurincipal interest income of the investment for 1 days in the currency according to the rules of thumb this is the amount that you will sell forward Question 42 1 pts By using data from Dataset (5) find the total opportunity cost of capital (Hint: find proceeds of 180 day investment in a second currency: principal + interest income). Question 43 1 pts By using data from Dataset (5) 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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