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James Clark is a currency trader with Wachovia. He notices the following quotes: Required:...

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Accounting

James Clark is a currency trader with Wachovia. He notices the following quotes:
Required:
a. Is the interest rate parity holding? You may ignore transaction costs.
b. What steps should be taken to make arbitrage profit? Assuming that James Clark is authorized to work with $1,000,000. Compute
the arbitrage profit.
Answer is not complete.
Complete this question by entering your answers in the tabs below.
Required A
What steps should be taken to make arbitrage profit? Assuming that James Clark is authorized to work with $1,000,000. Compute
the arbitrage profit.
Note: Round off the final answer to nearest whole dollar.
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