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q Suppose you are a foreign exchange trader and you have seen the following foreign exchange rates: CADI.9724/E CADI, 3450) El.4655/e Assume that you start

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Suppose you are a foreign exchange trader and you have seen the following foreign exchange rates: CADI.9724/E CADI, 3450) El.4655/e Assume that you start your trading in Canada with CAD1,000,000. Required a. Calculating the implied cross rate which currency is overvalued/undervalued? 2 marks b. Show the steps you need to follow to make a riskiess arbitrage profit? 2 marks c. How much profit will you make from this trading? I mark

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