Assume the Following Information

question 13

Multiple Choice

Assume the following information:
You have $400,000 to invest
Current spot rate of Sudanese dinar (SDD) = $.00570
90-day forward rate of the dinar = $.00569
90-day interest rate in the U.S.= 4.0%
90-day interest rate in Sudan = 4.2%
If you conduct covered interest arbitrage,what amount will you have after 90 days

• A) $416,000.00.
• B) $416,800.00.
• C) $424,242.86.
• D) $416,068.77.
• E) none of the above

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Definitions:

Line Study

An investigation or experiment that focuses on the perception, judgment, or memory of lines, often in the context of psychological research.

Conforms

Adjusts one's behavior or thinking to match with a group standard or expectation.

Behaviour

Actions, reactions, or conduct of an organism, usually in response to external or internal stimuli.

Conformity

The act of matching attitudes, beliefs, and behaviors to what is considered normal or acceptable in a specific social context.