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Suppose you can lend Argentine pesos at a default-free interest rate of 60%. You can borrow US dollars at a rate of 2%. The current
Suppose you can lend Argentine pesos at a default-free interest rate of 60%. You can borrow US dollars at a rate of 2%. The current exchange rate is 37 pesos per dollar. Based on these market data, do you conclude that there is an arbitrage opportunity for a US consumer? Yes No
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