Answer Happy

Intro You have $23,000 to invest and observe the following interest rates and exchange rates: Annual interest rates Deposit rate Loan rate Dollar 4% 4.7% Ruble 7.3% 8.2% Exchange rates Ask Bid $0.013 Ruble spot $0.014 Ruble 1-year forward $0.015 $0.016 Part 1 Attempt 1/10 for 10 pts. How many rubles will you get from converting your dollars? 0+ decimals Submit Part 2 | Attempt 1/10 for 10 pts. How many rubles will you have after depositing them at a Russian bank for one year? 0+ decimals Submit

Part 3 Attempt 1/10 for 10 pts. How many dollars will you get from selling your rubles at the one year forward rate? 0+ decimals Submit Part 4 | Attempt 1/10 for 10 pts. What is your risk-free rate of return (yield) from exploiting the higher interest rate in Russia? 3+ decimals Submit