Assume that interest rate parity holds, and the euro’s inter…

Assume that interest rate parity holds, and the euro’s interest rate is 9% while the U.S. interest rate is 12%. Then the euro’s interest rate increases to 11% while the U.S. interest rate remains the same. As a result of the increase in the interest rate on euros, the euro’s forward ____ will ____ in order to maintain interest rate parity.

Assume the following information:   You have $400,000 to inv…

Assume the following information:   You have $400,000 to invest: Current spot rate of Sudanese dinar (SDD) = $.00570 90-day forward rate of the dinar = $.00569 90-day interest rate in the U.S. = 4.0% 90-day interest rate in Sudan = 4.2%   If you conduct covered interest arbitrage, what amount will you have after 90 days?