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Given the information: Interest rate in US (Rh): Interest rate in Switzerland (Rf): The current spot rate for CHF (SR): 1-year forward rate for CHF

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Given the information: Interest rate in US (Rh): Interest rate in Switzerland (Rf): The current spot rate for CHF (SR): 1-year forward rate for CHF (FR): 4% 6% $0.80 $0.78 To set up a covered interest rate arbitrage, you should borrow in and invest in CHF; USD USD: CHF

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