Question: Heidi Hoi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. That anytime the difference in interest rates
Heidi Hoi Jensen is now evaluating the arbitrage profit potential in the same market after interest rates change. That anytime the difference in interest rates does not exactly equal the forward premium, it must be possible to make CIA profit one way or another?
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Assumptions Value kr Equivalent Arbitrage funds available 5000000 kr 30860000 Spot exchange rate kr ... View full answer
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