Given the information above, discuss if covered interest arbitrage worthwhile for an US investor who has US dollars to invest (assume the investor invests $1,000,000) Explain with calculations.
If Relative Purchasing Power Parity held what would you expect the GBP/EUR exchange rate to be in 6 months’ time Answer and show working out with the following maths questions: Assume the following information Quoted price Spot rate of Euro 0.80 USD 90 day forward rate of Euro 0.79 USD 90 day European interest rate … Read more