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b. There is $500,000 to invest. U.S is offering a 60-day interest rate of 6 percent per annum, while Malaysia is giving
Posted: Wed Mar 16, 2022 9:11 am
by answerhappygod
- B There Is 500 000 To Invest U S Is Offering A 60 Day Interest Rate Of 6 Percent Per Annum While Malaysia Is Giving 1 (21.71 KiB) Viewed 38 times
b. There is $500,000 to invest. U.S is offering a 60-day interest rate of 6 percent per annum, while Malaysia is giving 12 percent per annum for a tenure of 60 days. The spot rate of Ringgit Malaysia (RM) is $0.110 and the forward rate is $0.108. Ignoring all the tax effects, Would an American investor or Malaysian investor benefit from this arbitrage? (20 marks)