Question: Explain clearly and briefly You have US$ 1,000,000. a. Explain the concept of interest arbitrage. b. Outline various market conditions where interest arbitrage is impossible.

Explain clearly and briefly

You have US$ 1,000,000. a. Explain the concept of interest arbitrage. b. Outline various market conditions where interest arbitrage is impossible. C. Choose a mock combination of spot and forward exchange rates, as well as interest rates in UK and USA that allows for interest arbitrage, Based on your data, calculate the profit you can make over a year

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