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You need a loan in currency Z for a very profitable opportunity in country Z. However, that country only allows z-nationals to borrow/lend inside their

  1. You need a loan in currency Z for a very profitable opportunity in country Z. However, that country only allows z-nationals to borrow/lend inside their country.

Find a synthetic to a z-denominated loan of Z300,000. If , what would allow no arbitrage from Z-nationals? Find all the inflows and outflows (actual numbers) involved in the synthetic. (The numbers for this problem come from Argentina and their peso)

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