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Assume the following information. Spot rate of Mexican peso = $.109 90-day forward rate of Mexican peso = $.099 90-day Mexican interest rate = 6%

Assume the following information.

Spot rate of Mexican peso = $.109

90-day forward rate of Mexican peso = $.099

90-day Mexican interest rate = 6%

90-day U.S interest rate = 5%

Given this information, is covered arbitrage worthwhile for Mexican investors who have pesos to invest? explain your answer.

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