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7) According to IRP, the equilibrium one-year forward rate is $1.20/. However, the market one-year forward rate is $1.30/. To use arbitrage, you need to

7) According to IRP, the equilibrium one-year forward rate is $1.20/. However, the market one-year forward rate is $1.30/. To use arbitrage, you need to take a long positon on the forward market. (10points) a. True b. False

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