Current spot rate-interest rate

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Reference no: EM131077937

You have $900,000 to invest. Current spot rate of Australian dollar (A$) = $0.62. 180-day forward rate of the Australian dollar = $0.64.

180-day interest rate in the United States = 3.5%.

180-day interest rate in Australia = 3.0%.

If you conduct CIA, what is the dollar profit you will have realized after 180 days?

Reference no: EM131077937

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