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The Canadian dollar (CAD) trades at a positive cross-currency basis against the US dollar (USD). The Euro is trading at a negative cross-currency basis against

The Canadian dollar (CAD) trades at a positive cross-currency basis against the US dollar (USD). The Euro is trading at a negative cross-currency basis against the USD. Which of the following strategies will generate the greatest return?

a. Swap CAD for USD and invest in US government bonds

b.Swap Euro for CAD and invest in CAD government bonds

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