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Question 11: Assume that interest rate parity exists. The spot rate ARS/USD = 3.5. The one-year interest rate in the United States is 18.5% and

Question 11: Assume that interest rate parity exists. The spot rate ARS/USD = 3.5. The one-year interest rate in the United States is 18.5% and is 22% in Argentina. Assume an investor signed a purchasing forward contract of 2800 Argentine pesos. Determine the total dollar amount of profit or loss from this contract if the expected peso will be worth 4.33333333333333 in one year.
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IRP Qustion 11: Assume that interest rate parity exists. The spot rate ARS/USD =3.5. The one-year interest rate in the United States is 18.5% and is 22% in Argentina. Assume an investor signed a purchasing forward contract of 2800 Argentine pesos. Determine the total dollar amount of profit or loss from this contract if the expected peso will be worth 4.33333333333333 in one year

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