is this correct= -0.06
Assume the following information:
Current spot rate of Australian dollar = $0.78
Forecasted spot rate of Australian dollar 1 year from now = $.83
One-year forward rate of the Australian dollar = $0.72
Annual interest rate on Australian dollars = .07
Annual interest rate on U.S. dollars = .09
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $420,000 to invest is about _______
Recently Asked Questions
- Which of the following is the person responsible for accomplishing an organization 's goals by managing the efforts of the organization 's people ?
- Employment discrimination on which of the following basis is legal in the United States ?
- ¾ÖÖê ÃÖ´ÖæÆ Û Öî®Ö ÃÖÖ Æî ×•ÖÃÖ´Öë ÃÖæ “ Öß²Ö¨ ÃÖ³Öß Ã£ÖÖ®Ö ³ÖÖ¸ŸÖ Ûê ´ÖÆÖ®ÖÝÖ¸ ´ÖêÝÖÖ