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help please Assume that the interest rate on borrowings in Chile is 4 percent, but the interest rate on deposits in British banks is 8
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Assume that the interest rate on borrowings in Chile is 4 percent, but the interest rate on deposits in British banks is 8 percent. A trader borrows 1 million Chilean pesos, then converts the money into British pounds and deposits it in a British bank. What is the trader involved in? Multiple Choice carry trade. countertrade arbitration forward exchange purchasing power parity Step by Step Solution
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