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​Assume the Following Information: You Have $900,000 to Invest

question 63

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​Assume the following information: You have $900,000 to invest:
Current spot rate of Australian dollar (A$)
=
$) 62
180-day forward rate of the Australian dollar
=
$) 64
180-day interest rate in the United States
=
3) 5%
180-day interest rate in Australia
=
3) 0%

If you conduct covered interest arbitrage, what is the dollar profit you will have realized after 180 days?


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