1 A If the Treasury bond yield in UK is 9% whereas you can borrow from Japan at 3% annual interest rates. If the one yea

[answerhappygod]

1 A
If the Treasury bond yield in UK is 9% whereas you can borrow
from Japan at 3% annual interest rates. If the one year forward
rate is 100 Yen against GBP which is now trading at the spot rate
of 152 Yen/GBP. If you can borrow one million Yen from Japan then
how much profit can you make by conducting covered interest
arbitrage in a year? Please show the steps.
B
If suddenly export goes up 10% annually due to Covid and every
other thing remain constant then what will happen to the exchange
rate between USD and taka. Make sure you draw a diagram to show
your answer.
3. If you find out that 86.5 BDT/USD and 72.5 INR/USD but in the
market 1 INR is exchanged for 1.21 taka. If you can borrow $500 and
there is an arbitrage opportunity then conduct one arbitrage by
drawing a diagram how would you do it and your profit.
4. A) If in 2010 one INR equals to 1.69 BDT but today it is 1.16
BDT then how much BDT has appreciated?
B) If Bid rate is 74.5 INR/USD and Bid-Ask spread is 0.66% then
what should be the ASK rate of Indian Rupee?