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Business, 25.02.2020 06:23 Aprilbtrippin2004

You have $1,000,000 to invest: Current spot rate of pound = $1.25 90-day forward rate of pound = $1.24 3-month deposit rate in U. S. = 3% 3-month deposit rate in Great Britain = 4% If you use covered interest arbitrage for a 90-day investment, what will be the amount of U. S. dollars you will have after 90 days?

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You have $1,000,000 to invest: Current spot rate of pound = $1.25 90-day forward rate of pound = $1....

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