Exhibit 7-1 Assume the Following Information

question 78

Multiple Choice

Exhibit 7-1
Assume the following information:
You have $300,000 to invest:
The spot bid quote for the euro (€) is $1.08
The spot ask quote for the euro is $1.10
The 180-day forward rate (bid) of the euro is $1.08
The 180-day forward rate (ask) of the euro is $1.10
The 180-day interest rate in the United States is 6%
The 180-day interest rate in Europe is 8%
-Refer to Exhibit 7-1 above. If you conduct covered interest arbitrage, what amount will you have after 180 days?

• A) $318,109.10
• B) $330,000.00
• C) $312,218.20
• D) $323,888.90
• E) None of these are correct.

---

Definitions:

Long Documentary

A documentary film of extended duration that explores its subject in depth, typically running over an hour.

August 4

A date on the Gregorian calendar, notable for various historical events and individual commemorations depending on the year.

2012

A year recognized for significant global events, including the London Olympics and the speculated Mayan calendar end-of-world prediction.

Men's Spring

Refers to fashion, clothing, or activities particularly associated with men during the spring season, often highlighting seasonal changes in style and leisure pursuits.