The following is market information: Current spot rate of pound = $1.45 90-day forward rate of...

The following is market information:

Current spot rate of pound	=	$1.45
90-day forward rate of pound	=	$1.46
3-month deposit rate in U.S.	=	1.1%
3-month deposit rate in Great Britain	=	1.3%

If you have $250,000 and use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?

Expert Solution

jeff jeffy answered 8 months ago

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