Given the following information, show how you can arbitrage and compute your profit, if you can...

Spot rate ($/€) 1.255

3-month forward rate

($/€) 1.213

3-month U.S. dollar interest rate 2.0%

3-month euro interest rate 1.6%

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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