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Assume the following information: - Mexican one - year interest rate = 6% - U.S . one- year interest rate = 3% - Peso spot
Assume the following information: - Mexican one - year interest rate = 6% - U.S . one- year interest rate = 3% - Peso spot rate = 0.11 $/p - peso forward rate = 0.08 $/p interest rate parity exists, how do you take advantage of this opportunity ? explain please.
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