You are given the following information spot exchnage rate, Ask an Expert

Finance

You are given the following information :

Spot exchnage rate - Canadian dollar 0.665 per Euro

3 months forward rate - Canadian dollar 0.670 per Euro

interest rates - Canadian dollar 9% p.a and Euro is 7% p.a

Required

What operation could you carry out to take advantage of possible arbitrage opportunity?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92852570

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