1. Business
2. Finance
3. the pound spot rate is 156 the oneyear forward rate...

# Question: the pound spot rate is 156 the oneyear forward rate...

###### Question details

The Pound spot rate is $1.56. The one-year forward rate is$1.60. The one-year nominal U.S. interest rate is 3%. The one-year nominal UK interest rate is 5%. What is the profit per dollar from covered interest arbitrage?