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assume 1000000 90-day Interest rates in U.S.: 5.5% (annualized) 90-day interest rates in South Africa: 11%...

assume 1000000

90-day Interest rates in U.S.: 5.5% (annualized)

90-day interest rates in South Africa: 11% (annualized)

Spot ZAR/USD = 7.8780 90-day

Forward ZAR/USD = 7.9685

find Arbitrage profit:

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jeff jeffy answered 2 years ago
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