=3/A market trader is offering a $500m loan agreement in three months, for a period of three

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=3/A market trader is offering a $500m loan agreement in three months, for a period of three months, on the following terms: 3 3/4% – 3 7/8%. Using the information provided in Questions 1 and 2, can you identify an arbitrage opportunity? What is the potential gain for the arbitrageur?

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Corporate Finance Theory And Practice

ISBN: 9781118849330

4th Edition

Authors: Pierre Vernimmen, Pascal Quiry, Maurizio Dallocchio, Yann Le Fur, Antonio Salvi

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