Business, 28.10.2019 23:31 dozsyerra

Suppose that the annual interest rate is 2.0 percent in the united states and 4 percent in germany, and that the spot exchange rate is $1.60/€ and the forward exchange rate, with one-year maturity, is $1.58/€. assume that an arbitrager can borrow up to $1,000,000 or €625,000. if an astute trader finds an arbitrage, what is the net cash flow in one year? multiple choice $7,000 $238.65 $46,207 $14,000

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Business, 22.06.2019 08:30, rajenkins79

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Suppose that the annual interest rate is 2.0 percent in the united states and 4 percent in germany,...