Compute redwin return from this transaction

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Question - Redwin Cream, an American decided to invest $2,000,000 for six months. The six-month interest rate is 8 percent per annum in the United States and 10 percent per annum in Canada. Currently, the spot exchange rate is CAD1.30 per dollar and the six-month forward exchange rate is CAD1.31 per dollar. Compute Redwin's return from this transaction.

Reference no: EM133061608

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