Covered Interest Arbitrage Illustration 6


0

Covered Interest Arbitrage Illustration 6

USD/CHF Spot 1.3715

73 days forward USD/CHF 1.3675

CHF interest rate 1.5% per annum

USD interest rate 4.00% per annum

Identify and calculate interest rate, arbitrage if any.                                         (April 2007)

(Ans.: Borrow Home (CHF) and Invest Foreign (USD), Gain 20,602)


Like it? Share with your friends!

0
Score Tutorial
S’COrE Education is a professional coaching institute to coach for new generation courses. S’COrE has highly experienced faculty with enormous experience and achievement in teaching and industry. We teach each subject in such a manner that even complicated subject feels simple. This helps student to S’COrE-the-Max. Since 1998 S’COrE had university toppers accross courses and subjects. Once you are our student you will also believe S’COrE - the - Best !!

3 Comments

Facebook comments: