Question: Suppose the same information as in question 3. Suppose a dealer quotes a one year forward price of 350 dollars per euro. Describe the transactions

Suppose the same information as in question 3. Suppose a dealer quotes a one year forward price of 350 dollars per euro. Describe the transactions you would undertake to engage in an arbitrage.

question 3 below

Suppose the current exchange rate is 320 dollars per euro, the continuously compounded dollar interest rate is 3%, and the continuously compounded Euro interest rate is 1%. What is the one year Euro forward rate?

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