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5. Locational Arbitrage Assume the following information: Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute
5. Locational Arbitrage Assume the following information: Given this information, is locational arbitrage possible? If so, explain the steps involved in locational arbitrage, and compute the profit from this arbitrage if you had one million US\$ to use. What market forces would occur to eliminate any further possibilities of arbitrage? (10 points) 6. Covered Interest Arbitrage Assume the following information: Given this information, is covered interest arbitrage worthwhile for Mexican investors who have pesos to invest? Explain your answer. (10 points)
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