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Will an arbitrageur facing the following prices be able to make money? Bid Ask So($/) F360($/) $1.40-1.00 $1.44-1.00 $1.43-1.00 $1.49-1.00 $ le Borrowing 4.20%APR 3.65%APR
Will an arbitrageur facing the following prices be able to make money? Bid Ask So($/) F360($/) $1.40-1.00 $1.44-1.00 $1.43-1.00 $1.49-1.00 $ le Borrowing 4.20%APR 3.65%APR Lending 4.10%APR 3.50%APR a. Please analyze all the scenarios and decide whether arbitragers can make arbitrage profit or not. b. If Yes for part a, what are the arbitrage steps
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