Covered Interest Arbitrage Assignment | Homework For You
May 25th, 2020
Argentina. borrowing rate for 1 year = 4%
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Argentina deposit rate for 1 year = 2%
Mexico borrowing rate for 1 year = 8%
Mexico deposit rate for 1 year = 6%
Spot quote = 2.650 -51 A/P
The 1‑year forward quote = 2.450-51 A/P
2. Use the information to determine if covered interest arbitrage is possible. Please mark the 4 resulting calculations and answers and whether it’s possible.(10) Use 100 of each to start your math.Get Finance homework help today