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The current price of the Kamistan Rupee (KP) is $60/KR. the risk free interest rate in the US is 2% and in Kamistan is 10%
The current price of the Kamistan Rupee (KP) is $60/KR. the risk free interest rate in the US is 2% and in Kamistan is 10% . How much is your arbitrage profit in dollars half a year from now (for $10,000 at t=0), if the forward rate on the market is $64/KR?
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