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Homework answers / question archive / a) Assume the following information: Spot rate of $ =0
a) Assume the following information: Spot rate of $ =0.625 180 day forward rate of $1 = 0641 180 day British interest rate = 4% 180 day US interest rate = 3% Based on this information, is covered interest arbitrage by UK investors feasible (assuming a UK investor has £100,000 to possibly invest in the US)? Ex- Marks)
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