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Suppose you observe the following one-year interest rates, spot exchange rates and futures prices. Futures contracts are available on 10,000. What is the present value

Suppose you observe the following one-year interest rates, spot exchange rates and futures prices. Futures contracts are available on 10,000. What is the present value of the risk-free arbitrage profit that you can make on one contract at maturity? YOU MUST SHOW ALL YOUR COMPUTATIONS.

Exchange Rate Interest APR

S0($/) $1.45 = 1.00 i$ 4%

F1-yr($/) $1.48 = 1.00 i 3%

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