Question: Q2) the 2-month interest rates in Switzerland and the United States are, respectively, 2% and 3% per annum with continuous compounding. The spot price of

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Q2) the 2-month interest rates in Switzerland and the United States are, respectively, 2\% and 3\% per annum with continuous compounding. The spot price of the Swiss franc is $1.0500. The futures price for a contract deliverable in 2 months is also $1.0500. What arbitrage opportunities does this create

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