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Based on Arbitrage rule of thumb, create 2 examples for CIA and verify the rule. If the bank offering rate is 1 euro equals $1.4.

Based on Arbitrage rule of thumb, create 2 examples for CIA and verify the rule.

If the bank offering rate is 1 euro equals $1.4. and you borrow 100,000 euros. Can you make money if you enter into a forward contract with a bank for 90 days? Show your calculations

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