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Suppose F1 $//S0 $/ = 1.03 and (1+i$ )/(1+i ) = 1.05. List the transactions that enforce Interest Rate Parity through Covered Interest Arbitrage? (3

Suppose F1 $//S0 $/ = 1.03 and (1+i$ )/(1+i ) = 1.05. List the transactions that enforce Interest Rate Parity through Covered Interest Arbitrage? (3 pts) Also mark the order in which these transactions will need to occur.

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