Current spot rate of sf = $0.6543. 1-year interest rate in the u. s. = 7.5%. 1-year interest rate in the switzerland = 3.5%. if you could borrow $10,000,000 in the us, and set up an uncovered interest rate arbitrage, how many dollars will you have at the end of one-year (after paying off the loan) if you expect the spot rate of sf one year from now to be $0.6925.

$204264.10 dollars you will have at the end of one-year (after paying off the loan) if you expect the spot rate of SF one year from now to be $0.6925

Explanation:

change in SR = 0.05838

cost of uncovered rate = (1 + 0.05838)*1.035 - 1

                                      = 9.543%

total dollars end of one year = (0.09543 - 0.075)*10000000

                                                = $204264.10

Therefore, $204264.10 dollars you will have at the end of one-year (after paying off the loan) if you expect the spot rate of SF one year from now to be $0.6925

the u.s. census bureau produces data on the population and economy nationwide. it can you to analyze the kind of people living in your neighborhood. it does not show you the market of people willing to buy your product or an existing market for your product. that will require more market research. the census bureau only gives you an insight to the demographics in your area.

wheres the chart? so i can answer.