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Could an arbitrageur exploit the following situation; the annual interest rate in Japan is 1.4% and in the US the annual interest rate is 4.9%,

Could an arbitrageur exploit the following situation; the annual interest rate in Japan is 1.4% and in the US the annual interest rate is 4.9%, the USDJPY spot price is 101 and the one-year forward price is 97. What is the net profit for USD 1 (or its equivalent in the Yen) committed to this strategy?

A. $0.0000

B. $0.0068

C.0.6678

D.0.4678

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