Assume the following information:​ You have $1,000,000 to in…

Questions

Assume the fоllоwing infоrmаtion:​ You hаve $1,000,000 to invest: Current spot rаte of pound = $1.60 90-day forward rate of pound = $1.57 3-month deposit rate in U.S. = 3% 3-month deposit rate in U.K. = 4% ​ If you use covered interest arbitrage for a 90-day investment, what will be the amount of U.S. dollars you will have after 90 days?