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Author Question: You have equal amounts of money invested in a risk-free dollar-denominated investment and borrowed ... (Read 53 times)

bio_gurl

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on: Apr 25, 2021

Question 1

You can borrow $25,000 at 1% interest for 1 year. The exchange rate for Australia is 1.25AUS/1US. The Australian Treasury is offering 2.5% risk free investments. What is the total profit you can make in 1 year?
◦ $625
◦ $450
◦ $250
◦ $375
◦ $425

Question 2

You have equal amounts of money invested in a risk-free dollar-denominated investment and borrowed at the rate paid on the British pound. If you can earn a return during this, you have shown
◦ interest rate arbitrage.
◦ interest rate parity.
◦ purchasing power arbitrage.
◦ purchasing power parity.
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by bio_gurl on Apr 25, 2021

bdobbins

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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bio_gurl

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Reply 2 on: Apr 25, 2021
Excellent

nathang24

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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