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Fundamental and Powerful Concept 05: The spot rate is $1.0754/5 the 180-day forward rate for the Swiss franc is $x/SE the six month interest rate

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Fundamental and Powerful Concept 05: The spot rate is $1.0754/5 the 180-day forward rate for the Swiss franc is $x/SE the six month interest rate in the US, son paand in Switzerland is 80 pa. At whatx (forward rate) would possile arbitrage opportunity disappear and the equilibrium is restored D51.0555/5F 51.0651/5F 51.0858/SF 51.1059/5F

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