Assume the following information: Spot rate of B. Pound = $ 1.60 180-days forward rate of B. Pound = $ 1.56 180-days British interest rate = 4% 180-days US interest rate = 3% Based on these information's, is covered interest arbitrage by US investors feasible? Explain.
January 07, 2023
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Assume the following information: Spot rate of B. Pound = $ 1.60 180-days forward rate of B. Pound = $ 1.56 180-days British interest rate = 4% 180-days US interest rate = 3% Based on these information's, is covered interest arbitrage by US investors feasible? Explain.
Math
