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hh MXN14/CAO Based on the above two rates, calculate what the rate between U.S. dollara and Mexican peson SHOUL.D bu. The actual exchange rate, however,

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MXN14/CAO Based on the above two rates, calculate what the rate between U.S. dollara and Mexican peson SHOUL.D bu. The actual exchange rate, however, is 20MN/s. Assume that there are no transaction costs to trading and compare the cross rate (i.e. What the MXN/\$ rate should be) to what it actually is. Based on this comparison, one of your trades shouid be to: Select one: Sell U.S. dollars and buy pesos Sell pesos and buy U.S. dollars Neither - there is no arbitrage opportunity

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