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1. Assume the following information: You have $1,000,000 to invest: Current spot rate of pound One-year forward rate of pound One-year interest rate in U.S.

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1. Assume the following information: You have $1,000,000 to invest: Current spot rate of pound One-year forward rate of pound One-year interest rate in U.S. One-year interest rate in U.K. ====$1.60$1.572%4% If you use covered interest arbitrage for a one-year investment, what is your arbitrage profit

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