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Business, 23.07.2021 05:10 alyssatamayo641

​Kamada: CIA Japan​ (A). Takeshi​ Kamada, a foreign exchange trader at Credit Suisse​ (Tokyo), is exploring covered interest arbitrage possibilities. He wants to invest ​$ or its yen​ equivalent, in a covered interest arbitrage between U. S. dollars and Japanese yen. He faced the following exchange rate and interest rate quotes. Is CIA profit​ possible? If​ so, how? Arbitrage funds available $ 4,900,000 Spot rate (¥/$) 118.48 180-day forward rate (¥/$) 117.74 180-day U. S. dollar interest rate 4.791 % 180-day Japanese yen interest rate 3.393 %

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