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Suppose that USD-sterling spot and forward exchange rates are as follows: 90-day European put option to sell 1 for 1.2900 costs 4.35 cents, and the

Suppose that USD-sterling spot and forward exchange rates are as follows: 90-day European put option to sell Â£1 for 1.2900 costs 4.35 cents, and the 90-day forward price is 1.2565. What opportunity...

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