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Suppose that the 6-month interest rates (annualized) in Japan and the United States are 7 percent and 9 percent, respectively. If the spot rate is

Suppose that the 6-month interest rates (annualized) in Japan and the United States are 7 percent and 9 percent, respectively. If the spot rate is 142/$ and the 180-day forward rate is 141/$, explain whether arbitrage opportunity exist, and walk me through a numerical example to demonstrate HOW investors can (or cannot) take advantage of this opportunity.

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