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Consider the following information: S0 = 0.8 Euro/$ F1 = 0.75 Euro/$ RUS = 4% RE = 2% Is there an arbitrage opportunity? If there
Consider the following information: S0 = 0.8 Euro/$ F1 = 0.75 Euro/$ RUS = 4% RE = 2% Is there an arbitrage opportunity? If there is, show the profit you can earn.
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