Business, 20.03.2020 05:22 bellapimienta8

You are considering to invest in UK first, then convert the British Pound back to US$ in the future. You know following information: Annual Interest rate on investment in US: 2% Annual Interest rate on investment in UK: 1% Investment period: 1 year Current exchange rate: 1.52 $/BP Forward exchange rate which you can apply when converting BP to US$: 1.53 $/BP What will be profit or loss if you apply the covered-interest arbitrage? Group of answer choices Profit, about $36,838 Profit, about $16645 Profit, about $28,424

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You are considering to invest in UK first, then convert the British Pound back to US$ in the future....

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