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The 2 - month interest rates in Switzerland and the United States are, respectively, 1 % and 2 % per annum with continuous compounding. The

The 2-month interest rates in Switzerland and the United States are, respectively, 1% and
2% per annum with continuous compounding. The spot price of the Swiss franc is
$1.0500. The futures price for a contract deliverable in 2 months is also $1.0500. What
arbitrage opportunities does this create?

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