suppose you have the following information the spot exchange rate of $ 0.826 at interest...
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suppose you have the following information the spot exchange rate of $ 0.826 at interest rate in$ 0.035 the rate in 0.02 T = 6 months There is a quoted currency forward ($) 0.75 consider whether there are arbitrage opportunities if you illustrate the strategy and calculate the profit from arbitrage, using 4 decimals and capitalization continues refer to a notionate of $ 100,000
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