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13 An Italian currency dealer has good credit and can borrow 937.500 for one year. The one-year interest rate in the US is is =

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13 An Italian currency dealer has good credit and can borrow 937.500 for one year. The one-year interest rate in the US is is = 2.19% and in the euro zone the one-year interest rate is i - 6.089%. The spot exchange rate is $1.25 = 1.00 and the one-year forward exchange rate is $120 = 1.00 Show how to realize and calculate the certain euro-denominated profit via covered interest arbitrage Nestion

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