Assume the Following Information:​

question 20

Multiple Choice

Assume the following information:​
You have $1,000,000 to invest:
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?
Current spot rate of pound=$1.60
90-day forward rate of pound=$1.57
3-month deposit rate in U.S.=3%
3-month deposit rate in U.K.=4%

• A)$1,020,500
• B)$1,045,600
• C)$1,073,330
• D)$1,094,230
• E)$1,116,250

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Definitions:

Emergent Norm Theory

A theory that suggests norms or behaviors emerge spontaneously in groups in response to shared emotions or events.

Collective Behavior

Behavior that is enacted by a group of people who are acting together, but not necessarily as a result of planning or coordination.

Reformist Movement

A reformist movement seeks to enact change within an existing system, advocating for improvements or corrections without calling for the overthrow of the system itself.

American Civil Rights Movement

A decades-long struggle by African Americans and allies in the mid-20th century to end legalized racial discrimination, disenfranchisement, and racial segregation in the United States.