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S pot an arbitrage opportunity ( if it exists ) in the following situation. Suppose that a dealer A offers to buy british pounds in

S pot an arbitrage opportunity (if it exists) in the following situation. Suppose that a dealer A offers to buy british pounds in an year from now at a rate of Rs.79, while dealer B would sell British pounds immediately at a rate of Rs.80 a pound. Assume that a rupee can be borrowed at an annual rate of 4% and a British pound can be invested in a bank at 6% annual interest.

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