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Assuming the following information, show fully the amount of arbitrage profit that can be made on a borrowing of $10,000,000 AUD or $7,000,000 USD. Spot

Assuming the following information, show fully the amount of arbitrage profit that can be made on a borrowing of $10,000,000 AUD or $7,000,000 USD. Spot AUD = 0.70 USD One Year Forward AUD = 0.72 USD Australian Interest Rate = 4% pa USA Interest Rate = 6% pa

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