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The two months interest rates in Switzerland and the US are 1% and 2% respectively per annum with continuous compounding. The spot prices of the
The two months interest rates in Switzerland and the US are 1% and 2% respectively per annum with continuous compounding. The spot prices of the Swiss Franc is $1.05. The future price for a contact deliverable in 2 months is 1.05. What arbitrage opportunities does this create? I need key plus a clear explain explaination for this question
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