Investment amount of cad

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Assume interest rate on CAD is 2.93% per annum while interest rate on EUR is 6.84% per annum. Spot rate of CAD/EUR is $1.4748 and the one-year forward rate of CAD/EUR is $1.4558. What arbitrage profit can be made on an investment amount of CAD 1 million?

Reference no: EM133127006

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