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5. Assume the following information Spot rate of Mexican peso $0.1 180-day forward rate of Mexican peso $0.1 180-day Mexican interest rate 6% 180-day US

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5. Assume the following information Spot rate of Mexican peso $0.1 180-day forward rate of Mexican peso $0.1 180-day Mexican interest rate 6% 180-day US interest rate 3% Given this information, How to do the covered interest arbitrage? Assume the US investor has $1000, what will be the profit from the arbitrage? (20%)

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