In: Finance
Assume the following information
Current spot rate of New Zealand dollar | = | $0.41 |
Forecasted spot rate of New Zealand dollar 1 year from now | = | $0.43 |
One-year forward rate of the New Zealand dollar | = | $0.44 |
Annual interest rate on New Zealand dollars | = | 8% |
Annual interest rate on U.S. dollars | = | 9% |
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $675,000 to invest is about _______in decimal.