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Question 6: Calculate the one year forward exchange rate using the direct method: Spot Rate $ 1.4830 / U.S Libor (1 Year) 2.50 % Euro

Question 6: Calculate the one year forward exchange rate using the direct method: Spot Rate $ 1.4830 / U.S Libor (1 Year) 2.50 % Euro Libor (1 Year) 4.15 % Explain arbitrage condition underlying your work

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