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Here are some prices in the international money markets Spot rate $1.46/ Forward rate $1.49/ Interest rate () 7% per year Interest rate ($) 9%

Here are some prices in the international money markets Spot rate $1.46/ Forward rate $1.49/ Interest rate () 7% per year Interest rate ($) 9% per year Assuming you have $1,000,000 to invest. Explain if IRPT holds? In which country would you invest? (calculate the profit) Describe the flows

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