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If a pair of shoes in the United States costs $45, and a pair of the exact same shoes is sold in Mexico for 430
If a pair of shoes in the United States costs $45, and a pair of the exact same shoes is sold in Mexico for 430 pesos while the exchange rate is E = $0.1100/peso, what arbitrage opportunities exist (if any)? Ignoring transactions costs, explain how you would take advantage of this.
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