Suppose the spot foreign exchange rate of the Canadian dollar is $US 1.53, while its 12-month forward rate is $US 1.58. One-year interest rates are 6% in Canada and 10% in the United States. Are there quick profits to be made from foreign currency arbitrage here? If so, show the sequence of purchases and sales, using $Can. 100,000 as your starting point.
https://essaysprompt.com/wp-content/uploads/2020/10/19-2.png 0 0 https://essaysprompt.com/wp-content/uploads/2020/10/19-2.png 2022-12-18 06:53:372022-12-18 06:53:37Suppose the spot foreign exchange rate of the Canadian dollar is $US 1.53, whil
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