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1.13 (Ch. 7) Covered Interest Arbitrage. Assume the following information: St = 6 ARS/EUR Ft,180 = 6.25 ARS/EUR IEUR = 2% LARS = 7% T

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1.13 (Ch. 7) Covered Interest Arbitrage. Assume the following information: St = 6 ARS/EUR Ft,180 = 6.25 ARS/EUR IEUR = 2% LARS = 7% T = 180 days Given this information, is covered interest arbitrage possible? Design a covered arbitrage strategy and calculate its profits

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