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7. Suppose that the 1-year Interest rates in British and the United States are 2% and 4%, respectively exchange rate should be Suppose that the

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7. Suppose that the 1-year Interest rates in British and the United States are 2% and 4%, respectively exchange rate should be Suppose that the 1-year forward exchange rate is 1.5 $/. How to (continuously compounded), and the spot exchange rate is 1.35 USD per pound. The 1-year forward implement the arbitrage strategy? What the arbitrage profile (12")

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