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If the following data were available, the price of the euro reached 0.8375. The spot rate of the euro against the dollar was 0.8375, and
If the following data were available, the price of the euro reached 0.8375. The spot rate of the euro against the dollar was 0.8375, and the forward rate for three months. The interest on the dollar for three months was 3.45%, and on the euro was 5%. Assuming that an investor wants to borrow 1,500,000 dollars or its equivalent in euros, what is the procedure that will take It is done to take advantage of interest rate differences, spot and forward exchange rate differences, while calculating the amount of profit or loss for this investor
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