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please show your work, for the second question please explain what you have solved in first question 1) The ER between the Swiss franc and
please show your work, for the second question please explain what you have solved in first question 
1) The ER between the Swiss franc and the US dollar is one to one in the spot market. The interest rates in Switzerland and the US are .01 and .03 respectively. Swiss franc. What kind of arbitrage will induce a profit for you, if the forward rate is 1.05 Swiss francs equal \$1? Assume you start with $1 million. 2) Expound on interest parity theory in the aforementioned context. Is the above situation sustainable Step by Step Solution
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The Pillars Of Finance The Misalignment Of Finance Theory And Investment Practice
Authors: G. Fraser-Sampson
2014th Edition
1137264055, 978-1137264053
