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Suppose that the current EUR/GBP rate is 0.6676 and the one-year forward exchange rate is 0.6745. The one-year interest rate is 1.9% in euros and

Suppose that the current EUR/GBP rate is 0.6676 and the one-year forward exchange rate is 0.6745. The one-year interest rate is 1.9% in euros and 3% in pounds. You can borrow at most â?¬1,000,000 or t...

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