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Assume the following information Current spot rate of New Zealand dollar = $0.41 Forecasted spot rate...

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.

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jeff jeffy answered 1 year ago
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