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Suppose a 1-year UK T-bill pays 3.38% and a 1-year Carvadian To pay 1.73%. The current spot exchange rate is 1 British pound (GBP) =

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Suppose a 1-year UK T-bill pays 3.38% and a 1-year Carvadian To pay 1.73%. The current spot exchange rate is 1 British pound (GBP) = 1.7237 Canadian dollar (CAD) and the 1-year forward exchange rate is 1 GBP - 16743 CAD. What arbitrage pro canan investor earn on an investment value of CAD 1 mon? Answer: CAD

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