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International Financial Management Study Set 1
Quiz 7: International Arbitrage and Interest Rate Parity
42)assume the Following Information
Question 42
Multiple Choice
42)Assume the following information: You have $900,000 to invest:
If you conduct covered interest arbitrage, what is the dollar profit you will have realized after 180 days? A) $56,903. B) $61,548. C) $27,000. D) $31,500.
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Related questions
Q 43
43)Assume the following information: You have $400,000 to invest:
If you conduct covered interest arbitrage, what amount will you have after 90 days? A) $416,000.00. B) $416,800.00. C) $424,242.86. D) $416,068.77. E) none of the above
Q 44
44)Refer to Exhibit 7-1. If you conduct covered interest arbitrage, what amount will you have after 180 days? A) $318,109.10. B) $330,000.00. C) $312,218.20. D) $323,888.90. E) none of the above
Q 45
45)Refer to Exhibit 7-1. If you conduct covered interest arbitrage, what is your percentage return after 180 days? Is covered interest arbitrage feasible in this situation? A) 7.96%; feasible B) 6.04%; feasible C) 6.04%; not feasible D) 4.07%; not feasible E) 10.00%; feasible
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