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Question 8 The 6-month interest rate differential between and is C$ 3% (i.., i - CS = 3%) while the 6-month C$ forward premium against

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Question 8 The 6-month interest rate differential between and is C$ 3% (i.., i - CS = 3%) while the 6-month C$ forward premium against is 1%. Which currency should you borrow when doing a covered interest arbitrage trading between the two currencies? E Both currencies Either currency CS

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