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4. Jason Smith is a foreign exchange trader. At a point in time, he noticed the following quotes. a. Ignoring transaction costs, was the interest
4. Jason Smith is a foreign exchange trader. At a point in time, he noticed the following quotes. a. Ignoring transaction costs, was the interest rate parity holding? b. Was there an arbitrage possibility? If yes, what steps would have been needed to make an arbitrage profit? Assuming that Jason Smith was authorized to work with $1 million for this purpose, how much would the arbitrage profit have been in dollars
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