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What will be the amount of us dollars will have

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Reference no: EM132864702

Assume you have $1,000,000 to invest

Current spot rate of the pound = $1.3090 day forward rate of pound = $1.28

3 month deposit rate in US = 3%

3 month deposit rate in Great Britain = 4%

Problem 1: 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? show work

Reference no: EM132864702

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