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115 Spot exchange rate 360-day forward rate 1.20 SGBP/EUR) F360 (GBP/EUR) luk Eu UK interest...

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115 Spot exchange rate 360-day forward rate 1.20 SGBP/EUR) F360 (GBP/EUR) luk Eu UK interest rate 100% EU interest rate 50% A) What is the theoretical Forward rate that should prevail in this market under IRPY B) As a UK Investor how would you exploit the arbitrage opportunity YOU MUST: Online alle necesary and determine the GUP proto on lovestor could niet on a 1.000GOP basis NOTE, GOP profit can be determined as of today, time = 0 days OR in the future, time 30 days your choice What factors ist wenst keep arbitrage opportunities like this from oceuning in practice

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