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Calculate the one-year USD/EUR forward, USD/JPY forward and EUR/JPY forward based on continuous compounding interest rate (Ignore GBP). Furthermore, does there exist any arbitrage opportunities?
Calculate the one-year USD/EUR forward, USD/JPY forward and EUR/JPY forward based on continuous compounding interest rate (Ignore GBP). Furthermore, does there exist any arbitrage opportunities? If yes, please list at least one method. Otherwise explain the reason Currency USD GBP EUR Spot Interest Rate 5.00% 4.50% 5.5096 1.6 GBP/USD 0.9900 EUR/USD Y 120.00 USD/PY
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