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Consider the 2Y zero-rates in Poland and USA are 3% pa. and 1,5% pa, respectively. The spot exchange currently quoted is 3 PLN/USD. The FX
Consider the 2Y zero-rates in Poland and USA are 3% pa. and 1,5% pa, respectively. The spot exchange currently quoted is 3 PLN/USD. The FX rate under 2Y forward contract for a delivery of 1.000 USD is 3,05 PLN/USD. Suppose you are a financial speculator. What loan should you take now in order to realize a profit on one forward contract under arbitrage strategy
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