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Assume the Following Information: ​

question 54

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Assume the following information: ​
You have $1,000,000 to invest:
Current spot rate of pound
=
$1) 30
90-day forward rate of pound
=
$1) 28
3-month deposit rate in United States
=
3%
3-month deposit rate in Great Britain
=
4%

If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?


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