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Currently, the spot exchange rate is $ 1 . 5 2 and the three - month forward exchange rate is $ 1 . 5 4
Currently, the spot exchange rate is $ and the threemonth forward exchange rate is $ The threemonth interest rate is per annum in the US and per annum in the UK Assume that you can borrow as much as $ or Your final answer should be in dollars.
If the IRP is not holding, determine the arbitrage profit. Otherwise input your answer as PS: Please input your answer without any currency information.
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