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41. Assume the one-year interest rate in Canada is 3.32% and in France is 5.54%. Currently, the spot exchange rate is 1 CAD = 0.6442

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41. Assume the one-year interest rate in Canada is 3.32% and in France is 5.54%. Currently, the spot exchange rate is 1 CAD = 0.6442 EUR and the one-year forward exchange rate is 1 CAD = 0.6174 EUR. What arbitrage profit can you earn on an investment value of CAD 1 million? Answer: CAD

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