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Business, 02.07.2021 23:10 liltweetypie08ovdod4

The spot exchange rate is $0.75 US/CAD. The U. S. interest rate is 2%, the interest rate in Canada is 3%. A futures contract on 1,000,000 CAD, with one year to delivery, settles at 0.77 US/CAD. Calculate the amount of U. S. dollars that you need for the arbitrage strategy. Borrow $728,155 U. S Borrow $978,874 U. S Invest $978,874 U. S Invest $728,155 U. S

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The spot exchange rate is $0.75 US/CAD. The U. S. interest rate is 2%, the interest rate in Canada i...
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