International business assume thatnbspyou have the


International business.

Assume that you have the following information:

Spot Rate: 16.5292 Yen/Yuan

OneYear Forward Exchange Rate: 15.1418 Yen/Yuan

One Year Yen Interest Rate: 2.85%

OneYear Yuan Interest Rate: 2.58%

Is covered interest arbitrage worthwhile? If so, calculate the profit after one year assuming that you have 500,000 Yuan.

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Finance Basics: International business assume thatnbspyou have the
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