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A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one- year interest rate in the U.S. is

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A currency dealer has good credit and can borrow either $1,000,000 or 800,000 for one year. The one- year interest rate in the U.S. is i$ 2% and in the euro, zone the one-year interest rate is 1 = 6%. The spot exchange rate is $1.25 1.00 and the one-year forward exchange rate is $1.20 = 1.00 c)What is the amount of the investing currency obtained through borrowing and conversion? d)Identify in words 4 actions you would take today

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