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Given the following data Spot Rate: Rs 86.02 = $1 6 month Forward Rate: Rs 86.01=$1 Annualized interest rate on 6 month rupee: 12 percent

Given the following data Spot Rate: Rs 86.02 = \$1 6 month Forward Rate: Rs 86.01=$1 Annualized interest rate on 6 month rupee: 12 percent Annualized interest rate on 6 month dollar: 8 percent Calculate the Arbitrage possibilities

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