Covered Interest Arbitrage Assignment | Homework For You
May 25th, 2020
U.S. borrowing rate for 1 year = 5%
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Covered Interest Arbitrage Assignment | Homework For You
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U.S. deposit rate for 1 year = 2%
Lebanese Pound borrowing rate for 1 year = 9%
Lebanese Pound deposit rate for 1 year = 6%
Spot quote = 1509 ‑ 10 USDLBP
Lebanese Pound 1‑year forward quote = 1567 – 68 USDLBP
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)Get Finance homework help today