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Covered Interest Arbitrage. Evansville, Inc., has $2 million in cash available for 90 days. It is considering the use of covered interest arbitrage, since the

Covered Interest Arbitrage. Evansville, Inc., has $2 million in cash available for 90 days. It is considering the use of covered interest arbitrage, since the euros 90 day interest rate is higher than the U.S. interest rate. What will determine whether this strategy is feasible?

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