Devise a trading strategy ignoring transaction

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Consider the following data: The current spot price of one Canadian Dollar (CAD) in Swiss Franc (CHF) is CAD 1.370. The continuously compounded interest rate in Canada is 0.125%, whereas the corresponding Swiss interest rate is negative at -0.374%. The forward price of one CHF, for delivery in six months, is CAD 1.374. Are there any arbitrage opportunities? If this is the case, devise a trading strategy ignoring transaction

Reference no: EM133068988

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