One has the following data regarding spot and 1 8 month forward for USDCHF. Spot 1 .
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Question:
One has the following data regarding spot and month forward for USDCHF. Spot # of CHF to buy USD F US interest rate Swiss interest rate All quotes above are "market" quotes, ie one can buy or sell USD, borrow or lend, at the stated rates. A practioner would say that the quote for F seems "out of line", thus there could be an arbitrage opportunity. What would approximately be the profit in USD
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