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EXERCISE 15 Foreign Exchange rate quotations are: to = 0,9890 /$ -0,9900 /$ t3 meses 1,0100 /$ -1,0110 /$. If Nominal interest rates for
EXERCISE 15 Foreign Exchange rate quotations are: to = 0,9890 /$ -0,9900 /$ t3 meses 1,0100 /$ -1,0110 /$. If Nominal interest rates for both currencies are for a 3 month period (bid/ask annual interest rates) euro: 8,00% / 8,10% and dollar: 3,00% / 3,10%. Are there arbitrage possibilities? Would your answer change if you have the money available for investing? Why?
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Personal Finance
Authors: Jeff Madura
5th edition
132994348, 978-0132994347
