Explain how the concept of arbitrage influences

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Reference no: EM132030378

1. Explain how the concept of arbitrage influences the concepts of interest rate and purchasing power parity in foreign exchange markets.

2. What are the key differences between a futures contract and a forward contract? Give an example of how each type of contract can be used to hedge the risk associated with the expected future purchase of a commodity such as beef.

3. Do you think that credit unions should be subject to the same regulations as commercial banks?

Reference no: EM132030378

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