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Currency trader with James Clark is a Wells Fargo. He notices the following quotes: Spot exchange rate CHF 1.2051 / USD 6-month Fwd exchange Rate

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Currency trader with James Clark is a Wells Fargo. He notices the following quotes: Spot exchange rate CHF 1.2051 / USD 6-month Fwd exchange Rate CHF 1.1932 / USD. 6- Mareth dollar interest Rate 2.526 per year 6 months swiss interest rate 2.0 per year a a. Calculate the interest rate b. Does the interest rate parity hold? 2.56 James Clark is a Wells Fargo. He notices the following quotes: Currency trader with Spot exchange rate CHF 1.2051 / USD 6-month fwd exchange Rate CHF 1.1922 / USD 6-month dollar interest Rate per year 6-months swiss interest rate 2.0 per year a. Calculate the interest rate b. Does the interest rate parity hold? C. is there an arbitrage opportunity ? d. Assume James Clark is Authorized to work with 1,000,000. Compute the arbitrage profit

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