Assume the following information:
You have $1,000,000 to invest
Current spot rate of pound = $1.30
90day forward rate of pound = $1.28
3month deposit rate in U.S.= 3%
3month deposit rate in Great Britain = 4%
If you use covered interest arbitrage for a 90day investment,what will be the amount of U.S.dollars you will have after 90 days
A) $1,024,000.
B) $1,030,000.
C) $1,040,000.
D) $1,034,000.
E) none of the above

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The Answer of Assume the following information:
You have $1,000,000 to invest
Current spot rate of pound = $1.30
90day forward rate of pound = $1.28
3month deposit rate in U.S.= 3%
3month deposit rate in Great Britain = 4%
If you use covered interest arbitrage for a 90day investment,what will be the amount of U.S.dollars you will have after 90 days
A) $1,024,000.
B) $1,030,000.
C) $1,040,000.
D) $1,034,000.
E) none of the above

Assume the Following Information