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13. Suppose U.S interest rates are 5%, British interest rates are 8% and the current spot rate is 1 = $1.60. a. What is the

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13. Suppose U.S interest rates are 5%, British interest rates are 8% and the current spot rate is 1 = $1.60. a. What is the $ arbitrage profit if the forward rate is $1.54 per 1? (clearly list/draw out steps and assume you start by either borrowing $1 or 1) b. At what forward rate is the arbitrage opportunity eliminated

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