Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Fast pls solve this question correctly in 5 min pls I will give u like for sure Surbh
Please use the data below, to answer the following question.
Interest rate in US (Rh):
Interest rate in Canada (Rh):
Line of credit in US:
Line of credit in Canada:
The current spot rate for CAD
(SO):
1-year forward rate for CAD (F):
7%
5%
O CAD 219,804
O USD 200,000
O USD 10,000
O CAD 9,804
USD 10,000,000
CAD 10,000,000
$0.8000
$0.816
Your covered interest arbitrage profit is:
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Transcribed Image Text:Please use the data below, to answer the following question. Interest rate in US (Rh): Interest rate in Canada (Rh): Line of credit in US: Line of credit in Canada: The current spot rate for CAD (SO): 1-year forward rate for CAD (F): 7% 5% O CAD 219,804 O USD 200,000 O USD 10,000 O CAD 9,804 USD 10,000,000 CAD 10,000,000 $0.8000 $0.816 Your covered interest arbitrage profit is:
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