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A currency dealer can borrow 8 3 8 4 9 6 for one year. One year interest rate in the U . S . is

A currency dealer can borrow 838496 for one year. Oneyear interest rate in the U.S. is 3.70% and in the euro zone the oneyear interest rate is 6.42%. The spot exchange rate is $1.49=1.00 and the oneyear forward exchange rate is $1.23=1.00. What arbitrage profit can be made?

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