Covered Interest Arbitrage Sums
(1) USD HKD 7.0000 Spot
USD HKD 7.1000 6 months
Interest Rates Hong Kong 4%
US of A 3%
Calculate Arbitrage, if any.
(Ans.: Borrow HKD Gain HKD 9,500)
(2) USD INR 52 Spot
USD INR 53 6 months
Interest Rates India 9%
US of A 5%
Calculate Arbitrage, if any.
(Ans.: Borrow $; USD 283)
(3) CAD CHF 0.8800 Spot
CAD CHF 0.8770 6 months
Interest Rates Swiss 4%
Canada 3%
Calculate Arbitrage, if any.
(Ans.: Borrow CAD Gain CAD 8,489)
(4) USD ZAR 6.00 Spot
USD ZAR 6.01 3 months
Interest Rates South Africa 2.50%
US of A 3.60%
Calculate Arbitrage, if any.
(Ans.: Borrow ZAR Gain ZAR 4,432)
(5) 100 INR GBP 1.2200 Spot
100 INR GBP 1.2210 73 days
Interest Rates Brit 6.00%
India 9.00%
Calculate Arbitrage, if any.
(Ans.: Borrow GBP Gain GBP 6,834)
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