Ultimate goal? Determine if Covered Interest Arbitrage is possible or not. State whether yes or no.
Step 1) On Day 1, convert U.S. dollars to Thai baht and set up a 90-day deposit account at a Thai bank
Step 2) In 90 days, the Thai deposit will mature to ……fill in………which is the amount to be sold forward
Step 3) In 90 days, convert the Thai baht into U.S. dollars at the agreed-upon rate
Step 4) Dollar amount available on a 90-day U.S. deposit
Step 5) Dollar profit over and above the dollar amount available on a 90-day U.S. deposit