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If you have $1,000,000 but you have to use it in the next 6 months. SPOT RATE 1S =30.50-31 B 6MTH SPOT RATE 15 = 32-33 B 6MTH FORWARD RATE 1$ -31.50-32 B Thai Interest Rate =3% US Interest Rate = 1% 2.1 What should you do to gain the profit? 2.2 What should be the 6' month spot rate?

If you have $1,000,000 but you have to use it in the next 6 months. SPOT RATE 1S =30.50-31 B 6MTH SPOT RATE 15 = 32-33 B 6MTH FORWARD RATE 1$ -31.50-32 B Thai Interest Rate =3% US Interest Rate = 1% 2.1 What should you do to gain the profit? 2.2 What should be the 6' month spot rate?

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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If you have $1,000,000 but you have to use it in the next 6 months.

SPOT RATE 1S =30.50-31 B

6MTH SPOT RATE 15 = 32-33 B

6MTH FORWARD RATE 1$ -31.50-32 B

Thai Interest Rate =3%

US Interest Rate = 1%

2.1 What should you do to gain the profit?

2.2 What should be the 6' month spot rate?

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