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The 180-day interest rates in Canada and U.K. are 7% and 3%, respectively. The spot exchange rate is CAD1.75/ and the 180-day forward rate is

The 180-day interest rates in Canada and U.K. are 7% and 3%, respectively. The spot exchange rate is CAD1.75/ and the 180-day forward rate is CAD1.70/. Assuming that the CIRP is being held true, what are the expected and realized rate of return to carry traders?

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