Exhibit 7-1 Assume the Following Information

question 14

Multiple Choice

Exhibit 7-1
Assume the following information:
You have $300,000 to invest:
The spot bid rate 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 U.S. is 6%
The 180-day interest rate in Europe is 8%
-Refer to Exhibit 7-1. 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 the above

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Definitions:

Dissociative Identity Disorder

A mental disorder characterized by the presence of two or more distinct personality states.

Researchers

Individuals engaged in conducting detailed investigations to discover or interpret new knowledge or advancements in their field of study.

Dissociative Disorder

A mental health condition involving disruptions or discontinuity in consciousness, identity, emotion, perception, behavior, and memory.

Dissociative Amnesia

A disorder characterized by an inability to recall important personal information, typically following a traumatic or stressful event.