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The currency spot rate is $1.31 per euro. If dollar denominated interest rates are 3.0% and euro denominated interest rates are 5.0%, if you observe

The currency spot rate is $1.31 per euro. If dollar denominated interest rates are 3.0% and euro denominated interest rates are 5.0%, if you observe the 1-year forward rate is 1.36$/euro, you would set up the arbitrage position by ____ the forward, ____ $ risk-free asset, _____ $ at current spot rate, long Euro risk-free asset.

Group of answer choices

long, short, sell

long, short, buy

short, long, sell

short, short, sell

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