question archive You have the following financial market information
You have the following financial market information
Subject:FinancePrice:2.86 Bought9
You have the following financial market information. You also have 1.57 million Australian dollar (A$) or 3.51 million Thai baht (THB) to make a profit due to covered interest arbitrage (CIA). Calculate the profit in A$ or THB if the CIA opportunity exists in the market. (enter the whole number without sign and symbol)
|
|
Bid price |
Ask price |
|
THB spot rate |
A$0.0431 |
A$0.0607 |
|
THB one-year forward rate |
A$0.0421 |
A$0.0647 |
|
A$ spot rate |
THB22.4115 |
THB24.9220 |
|
A$ one-year forward rate |
THB27.1789 |
THB29.6532 |
|
|
Deposit rate |
Loan rate |
|
Interest rate on A$ |
2.43% |
4.19% |
|
Interest rate on THB |
6.36% |
8.53% |
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