A us investor wants to buy als spot invest in the uk for 3, Ask an Expert

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A US investor wants to buy A??Ls spot, invest in the UK for 3 months and then sell the proceeds in the spot market. The 3 month interest rate in UK is 1.25% (0.0125), today's spot rate is A??L1 = $1.5, and the investor expects the spot rate to be A??L1 = $1.6 in 3 months time. What is the investor's expected RATE of return from such an investment? Show and explain all relevant calculations.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91732485

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