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Suppose the spot $/ exchange rate is 0.008, the 1 year continuously compounded dollar-denominated rate is 5% and the 1 year continuous compounded yen- denominated

Suppose the spot $/ exchange rate is 0.008, the 1 year continuously compounded dollar-denominated rate is 5% and the 1 year continuous compounded yen- denominated rate is 1%. Suppose the 1-year forward exchange is 0.0083. Explain precisely the transaction you could use to make money with zero initial investment and no risk. How much do you make per yen?

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