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(b) The following are the prices in the international money markets: Spot rate = $1.46/ = $1.49/ Forward rate for one year Interest rate for

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(b) The following are the prices in the international money markets: Spot rate = $1.46/ = $1.49/ Forward rate for one year Interest rate for Euro = 7 percent per year Interest rate for Dollar = 9 percent per year Assume the investor have 700,000 for initial investment, calculate the percentage of yield based on the strategy by using covered interest artbitgrage

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