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The 2-month interest rates in Switzerland and the United States are, respectively, 0.5% and 1.5% per annum with continuous compounding. The spot price of the

The 2-month interest rates in Switzerland and the United States are, respectively, 0.5% and 1.5% per annum with continuous compounding. The spot price of the Swiss franc is $1.0300. The futures price for a contract, deliverable in 4 months, is $1.0400. Determine any arbitrage opportunities and explain carefully how to utilize them.

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