Deprecated: Methods with the same name as their class will not be constructors in a future version of PHP; JSON has a deprecated constructor in /home/clouawmm/public_html/wp-content/plugins/calculated-fields-form/cp_calculatedfieldsf.php on line 2264
U.S. investors have $1,000,000 to invest - Cloud Essays

Browse Our Directory

U.S. investors have $1,000,000 to invest

$2.00

Assume the following information:

U.S. investors have $1,000,000 to invest
1-year deposit rate offered on U.S. dollars = 12%
1-year deposit rate offered on Singapore dollars= 10%
1-year forward rate of Singapore dollars = $0.412
Spot rate of Singapore dollar = $0.400

Should a U.S. based investor Covered interest arbitrage and invest in Singapore? Answer

  • Yes because the return would be 14.23%
  • No because the return would be 14.23%
  • Yes because the return would be 13.3%
SKU: u-s-investors-have-1000000-to-invest Category:
Share this Solution with a Classmate