Calculate the possible arbitrage profits

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Reference no: EM13729739

Calculate the possible arbitrage profits given the following environment. Make sure you show all calculations and explain the steps needed to realize the profit.

Spot exchange rate (peso/$) 6.172

3-mo forward rate 6.198

USD 3-mo interest rate 0.04

Peso 3-mo rate 0.05

Reference no: EM13729739

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