Covered Interest Arbitrage II: Which Currency to start From?
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Uploader Comments (csbhatnagar)
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All Comments (12)
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Good Video clear and concise and very well explained
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Hello Sir, I actually have a question regarding the investment venue.
Why do we borrow in a country with a higher interest rate and invest in a country with lower interest rate if the interest rate differential is lesser then the forward rate differential? Is it because we mainly profit from the forward rate differential?
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TY! YOU ARE AWESOME. I'M SCORING AN "A" FOR MY PAPER TOMORROW =))))
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simple and neat, thanks. Now I get it!
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Excellent
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thank you very much...u just helped me a lot.
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great teacher thanks
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Mistake at the end. You would pay back $110 not $100. So the CIA profit is as follows:
$116.67 - $110 = $6.67
alique087 1 year ago
@alique087 Many thanks for pointing this out. The error is inadvertent though. I will make the correction in the description rather than doing the whole video again. Thanks again.
csbhatnagar 1 year ago