Group presentation Ch.6

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Group presentation Ch.6

• Gordan Kalinic Vincent Guerrieri
• Kayla Cundiff Amer Almualla

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Problem 2

• A.) Y3,000,000 x (1.00/Y1.22) 24,590
• B.) Y122/1.00 Y122/1.02 Y119.61/1.00
• Y3,000,000 x (1.00/Y119.61) 25,081.51
• C.) 25,081.51/25,081.51 100 or 1.00
• D.) 35,830.73/25,081.51
• 70 or 1.70

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Problem 5
James Chang can make a profit of 13.93
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Problem 6a
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Problem 6b
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Problem 10
Covered Interest Arbitrage (CIA) Mary Smith
investments opportunities
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Problem 10
3 month US interest rate
3 month Swiss interest rate
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VS.
According to our calculation, Mary Smith should
invest in Swiss Franc and the 90 days forward
rate. She will make a risk less profit of 7,848
in 90 days.