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If is given = - Tht = 5%, rft = 3% Co = 1,150, ft =?, Let A be the amount of borrowing of foreign
If is given = - Tht = 5%, rft = 3% Co = 1,150, ft =?, Let A be the amount of borrowing of foreign currency. If you can make a 10% of arbitrage profits in terms of local currency, what is ft? How does the arbitrage opportunity disappear? (15 points) If is given = - Tht = 5%, rft = 3% Co = 1,150, ft =?, Let A be the amount of borrowing of foreign currency. If you can make a 10% of arbitrage profits in terms of local currency, what is ft? How does the arbitrage opportunity disappear? (15 points)
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