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James Clark is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate USD 1 . 2 0 5 1 /
James Clark is a foreign exchange trader with Citibank. He notices the following quotes.
Spot exchange rate
USDSFr
Sixmonth forward exchange rate
USDSFr
Sixmonth $ interest rate
per year
Sixmonth SFr interest rate
per year
Is there an arbitrage opportunity? If yes, determine the arbitrage profit in Swiss Francs.
Assume that James Clark is authorized to work with $ Input your answer without any currency information.
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