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Find the range of possible values for the U.S. interest rate so that arbitrage is not possible. Spot /$ bid-ask exchange rates are 0.9-0.91 /$,
Find the range of possible values for the U.S. interest rate so that arbitrage is not possible. Spot /$ bid-ask exchange rates are 0.9-0.91 /$, one-year forward bid-ask exchange rates are 1- 1.01/$, the borrowing and investment rates in the U.K. are 4% ad 3.5% respectively.
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