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You have 1000 to invest. Try to obtain a gain through an arbitrage knowing the following information: Interest on Euro: 5% annual Interest on Russian

You have 1000 to invest.

Try to obtain a gain through an arbitrage knowing the following information:

Interest on Euro: 5% annual

Interest on Russian Rubles: 11% annual

Spot rate at the present time: 86.3718 RUB/

90-day forward exchange rate: 86.2085 RUB/

Assume there is not bid-ask spread

What is your gain if you can take advantage of the discrepancy in rates?

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