Case Studies: Finance, Foreign Exchange and Interest Rates

As location arbitrage occurs, Orleans Bank will increase its ask price while Kansas Bank reduces its bid price, causing a realignment of the exchange rates. 4. Covered Interest Arbitrage. Assume the following information: British pound spot rate = $1. 58 British pound one-year forward rate = $1. 58 British one-year interest rate = 11% U. S. One-year interest rate = 9% Explain how U. S. Investors ...

Business Finance Subject Topics for students

Topics covered in the module provide students with a foundation for other subjects and a foundation of professional-specific skills and knowledge. Students are expected to learn and understand Business Finance in the context of integrated business environment. They will be able to analyses the financial function in business and its strategic role in corporate management. They will also develop ...