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Suppose: S($/)=$1.25/; F 360 ($/)=$1.10/; i $ =7.04%; i =11.50% -based investors should do interest arbitrage as borrow in USD and invest in GBP because
Suppose: S($/)=$1.25/; F360($/)=$1.10/; i$=7.04%; i=11.50%
-based investors should do interest arbitrage as borrow in USD and invest in GBP because i> i$.
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