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Assume the one-year interest rate in the United States is 1.31% and in France is 3.51%. Currently, the spot exchange rate is 1 EUR =1.25

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Assume the one-year interest rate in the United States is 1.31% and in France is 3.51%. Currently, the spot exchange rate is 1 EUR =1.25 USD and the one-year forward exchange rate is 1 EUR =1.284 USD. What arbitrage profit can you earn on an investment value of USD 0.5 million? USD

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