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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 transaction

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