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James Clark is a currency trader with Wachovia. He notices the following quotes: Required: a . Is the interest rate parity holding? You may ignore

James Clark is a currency trader with Wachovia. He notices the following quotes:

Required:

.

Is the interest rate parity holding? You may ignore transaction costs.

.

What steps should be taken to make arbitrage profit? Assuming that James Clark is authorized to work with $

1, 000, 000 .

Compute

the arbitrage profit.

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