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The annual risk-free rate with continuous compounding in Singapore and the USA is 2% and 10%, respectively. The spot exchange-rate of US dollars (USD) and

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The annual risk-free rate with continuous compounding in Singapore and the USA is 2% and 10%, respectively. The spot exchange-rate of US dollars (USD) and Singaporean dollars (SGD) is 0.61 USD/SGD. You are based in the USA and a futures contract on this currency (exchange-rate) for delivery in a year has a price of (a) 0.68 USD/SGD and (b) 0.64 USD/SGD. For each case, discuss if there are arbitrage opportunities and if so, compute the arbitrage profit

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