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5. Lets do some arbitrage! The following table provides details for the $/exchange rate and UK and US interest rates. ssume you can invest 1,000,000.

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5. Lets do some arbitrage! The following table provides details for the $/exchange rate and UK and US interest rates. ssume you can invest 1,000,000. Consider the dollar is the domestic currency. a. Check whether interest rate parity holds. b. Construct an arbitrage strategy and determine the expected profit

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