question archive The next two questions are based on the following information Consider the following prices in the international money markets: Spot rate: USD'I
Subject:BusinessPrice: Bought3
The next two questions are based on the following information Consider the following prices in the international money markets: Spot rate: USD'I.275,'GBP One-year Forward rate: U5D1.364,I'GBP Interest Rate [UK]: 2.39% Interest Rate {US}: 11.66% Assuming no transaction costsI which of the following statements is true? An arbitrage can be obtained by borrowing in the currency that is expressing the other currency. F" E" An arbitrage can be obtained by investing in the currency that is expressing the other currency. An arbitrage can be obtained by borrowing in the currency that is being expressed by the other currency. 9- An arbitrage cannot be obtained by investing in the currency that is being expressed by the other currency. O O O O O ('3 e. None of the options in this questions are correct.