Calculate how much money you would make
Question: Suppose that the Euro is selling for US$1.10 per 1 Euro or "120 Yen per Euro", and the yen is 100 Yen per $US1. Demonstrate the specific trades that you would use to make money, and calculate how much money you would make.
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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?
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Demonstrate the specific trades that you would use to make money, and calculate how much money you would make.
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Assuming that the subsidiary in Poland is self-contained and that Poland is not a highly inflationary country, show the conversion to U.S. dollars.
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