Conduct covered interest arbitrage

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A foreign exchange trader, authorised to trade $30,000, faces the following quotes and interest rates:

One-year U.S. interest rate 9.54% p.a.
One-year U.K. interest rate 7.59% p.a.Spot rate: GBP/USD 1.5000
One-year forward rate: GBP/USD 1.5625

What should the trader do to conduct covered interest arbitrage?

Reference no: EM133060527

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