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Copy the following figure (Figure 3.2) to the examination answer booklet. Show how a two-point arbitrage is conducted to bring about market equilibrium if currency

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Copy the following figure (Figure 3.2) to the examination answer booklet. Show how a two-point arbitrage is conducted to bring about market equilibrium if currency y trades at a higher price in location A than in location B. Figure 3.2 (6 marks)

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