Homework Answers
Borrow 1000000 dollars
Convert to 800000 euros
Invest in UK becomes 800000*(1+5.4%*3/12)=810800 euros or
810800/0.7813=1037757.584 dollars
Return 1000000*(1+5.60%*3/12)=1014000 dollars
Profit=1037757.584-1014000=$23757.584
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