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Calculate the possible arbitrage profits given the following environment. Make sure you show all calculations and explain the steps needed to realize the profit. Spot

Calculate the possible arbitrage profits given the following environment. Make sure you show all calculations and explain the steps needed to realize the profit.

Spot exchange rate (peso/$) 6.172

3-mo forward rate 6.198

USD 3-mo interest rate 0.04

Peso 3-mo rate 0.05

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