What would be the yield percentage return to a us investor


Assume the following information: Quoted Price Spot rate of Canadian dollar $.80 90-day forward rate of Canadian dollar $.79 90-day Canadian interest rate 4% 90-day U.S. interest rate 2.5% Given this information, what would be the yield (percentage return) to a U.S. investor who used covered interest arbitrage?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What would be the yield percentage return to a us investor
Reference No:- TGS02306283

Expected delivery within 24 Hours