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Explain in details how to set up arbitrage positions in the following case and calculate your profit. You can assume you borrow 1000 units of

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Explain in details how to set up arbitrage positions in the following case and calculate your profit. You can assume you borrow 1000 units of the currency you need. Spot Exchange Rate 1 CHF = 0.85 USD US Interest 4% per annum Rate Swiss Interest Rate 5% per annum Time Horizon 6 months Forward Exchange Rate 1 CHF = 0.9 USD

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