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Assume the following information: Swiss one-year interest rate = 8%, U.S. one-year interest rate = 5%, Franc spot rate = 0.12 USD/CHF, Franc forward rate

Assume the following information: Swiss one-year interest rate = 8%, U.S. one-year interest rate = 5%, Franc spot rate = 0.12 USD/CHF, Franc forward rate = 0.08 USD/CHF. If interest rate parity exists, how do you take advantage of this opportunity? Explain.

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