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Business, 05.02.2020 09:53 davidheredia9

One year u. s. interest rates are 5%, and european interest rates are 7%. the spot euro direct exchange rate quote is 1.32, and the 1-year forward rate direct quote is 1.35. if you can borrow either $1 million or €1 million to start with, what would be your dollar profits from interest arbitrage based on these data?

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