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Assume a US annual interest rate of 8% and a European annual interest rate of 6%. If the spot rate for the USD-EUR is 0.74

Assume a US annual interest rate of 8% and a European annual interest rate of 6%. If the spot rate for the USD-EUR is 0.74€ and the forward rate is 0.73€. Do we have an arbitrage opportunity? Where should we borrow and where should we invest? What is the final result?

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