Assume the following information:   U.S. investors have $1,0…

Assume the following information:   U.S. investors have $1,000,000 to invest: 1-year deposit rate offered by U.S. banks = 12% 1-year deposit rate offered on Swiss francs = 10% 1-year forward rate of Swiss francs = $.62 Spot rate of Swiss franc = $.60   Given this information:

Assume the following information for a bank quoting on spot…

Assume the following information for a bank quoting on spot exchange rates:   Exchange rate of Singapore dollar in U.S. $ = $.32 Exchange rate of pound in U.S. $ = $1.50 Exchange rate of pound in Singapore dollars = S$4.50   Based on the information given, as you and others perform triangular arbitrage, what should logically happen to the spot exchange rates?

Assume the following information:  Current spot rate of…

Assume the following information:  Current spot rate of New Zealand dollar = $.41 Forecasted spot rate of New Zealand dollar 1 year from now = $.43 One-year forward rate of the New Zealand dollar = $.42 Annual interest rate on New Zealand dollars = 8% Annual interest rate on U.S. dollars = 9%   Given the information in this question, the return from covered interest arbitrage by U.S. investors with $500,000 to invest is ____%.