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A currency dealer can borrow $1,280,000 (or the equivalent in curos) for one year. The one-year interest rate is 4.40% in the U.S. and 8.00%

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A currency dealer can borrow $1,280,000 (or the equivalent in curos) for one year. The one-year interest rate is 4.40% in the U.S. and 8.00% in the euro zone. The spot exchange rate is $1.5276/1.00 and the one-year forward exchange rate is $1.4945/1.00. What arbitrage profit results if the trader borrows the maximum available fonds? $49,119.76 OR 32,867.02 $46,080.00 OR 30,833.05 $6,366.31 OR 4,259.83 $59,434.91 OR 39,769.09 $10,790.36 OR 10,790.36 $16,126.19 OR 10,790.36

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