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Suppose that on 1st July, you observe the following spot exchange rates in the market. EUR/USD1.2900/50 EUR/GBP0.6600/50 GBP/USD 1.9498/9721 Do these exchange rates present you

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Suppose that on 1st July, you observe the following spot exchange rates in the market. EUR/USD1.2900/50 EUR/GBP0.6600/50 GBP/USD 1.9498/9721 Do these exchange rates present you with an arbitrage opportunity? Explain your answer. If so, outline one way in which you could exploit this opportunity to make riskless profit

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