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Suppose You Observe the Following 1-Year Interest Rates,spot Exchange Rates

Question 70

Multiple Choice

Suppose you observe the following 1-year interest rates,spot exchange rates and futures prices.Futures contracts are available on €10,000.How much risk-free arbitrage profit could you make on 1 contract at maturity from this mispricing? Suppose you observe the following 1-year interest rates,spot exchange rates and futures prices.Futures contracts are available on €10,000.How much risk-free arbitrage profit could you make on 1 contract at maturity from this mispricing? A) $159.22 B) $153.10 C) $439.42 D) None of the above


A) $159.22
B) $153.10
C) $439.42
D) None of the above

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