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You observe that the spot price of the Russian ruble is 0 . 0 3 . The Russian one - year interest rate is 1

You observe that the spot price of the Russian ruble is 0.03. The Russian one-year interest rate is 12% and the euro interest rate is 5%. The one-year forward price of the ruble is 0.032. Show how to carry out an arbitrage, assuming you can borrow the equivalent of 600,000

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