Suppose the quarterly (90-day) interest rate in the us is 2.5% and it is 4% in canada. if the $/cd spot exchange rate is $0.80/cd and the 90-day forward exchange rate between us and canadian dollars is $0.79/cd , does the interest rate parity (irp) hold? why or why not? if it does not hold, what is the direction of the capital flow? if an arbitrageur can borrow up to $1,000,000 (or cd1,250,000), formulate a covered interest arbitrage. make sure to explain your steps in detail (just writing out three random calculations does not count). determine the amount of arbitrage profit. for interest rate parity (irp) to hold, what should the correct forward exchange rate be?

you can lose ranking 2 ways.

1) you don't have enough points due to you expending them by asking questions/your answers are deleted.

2) your brainliest's expired. this means that brainliests, once they exceed the 30 day limit, expires. this is to ensure that you continue to contribute into the community at a constant rank if you want to continue to have/exceed the rank you have right now.

if you go to profile, and click "show more information" located on the bottom left of the box with your information (on top of the questions answered, questions asked, and friends), you will be given the following information (example):

member since : 02/13/2017, 18: 11

questions answered: 9741

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brainliest answers in last 30 days: 10

warnings: 0 view

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look at the "brainliest answers in the last 30 days". this is the one that will affect your rank other than your points. again, once your brainliest expires (was earned 31+ days ago), it will not be counted.

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answer; a large down payment,a longer term loan, would result in a lower monthly payment;

answerthe above statement is (true);