Given the information in this question the return from


Let's assume the following information:

Current spot rate of Canadian dollar = $0.75

Forecasted spot rate of Canadian dollar 1 year from now = $.83

One-year forward rate of the Canadian dollar = $0.73

Annual interest rate on Canadian dollars = .07

Annual interest rate on U.S. dollars = .09

Given the information in this question, the return from covered interest arbitrage by U.S. investors with $430,000 to invest is about _______.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Given the information in this question the return from
Reference No:- TGS02825545

Expected delivery within 24 Hours