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Covered Interest Arbitrage Consider the following information: So = 0.8 Euro/$ Rus = 4% F1 = 0.7 Euro/$RE = 8% If we start with $100,

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Covered Interest Arbitrage Consider the following information: So = 0.8 Euro/$ Rus = 4% F1 = 0.7 Euro/$RE = 8% If we start with $100, what is the profit (if any) we could make in US dollars through the Covered Interest Arbitrage. Be sure to show your work

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