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If the actual price of a futures contract on British pounds is lower than the theoretical futures price, the correct arbitrage strategy is to buy

If the actual price of a futures contract on British pounds is lower than the theoretical futures price, the correct arbitrage strategy is to buy the futures contract, borrow British pounds at the British risk free interest rate, exchange the British pounds for U.S. dollars in the spot market and invest U.S. dollars at the U. S. risk free interest rate.
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