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What expect the exchange rate of that country to

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Problem 1: If the spot rate for CAD/AUD is 0.7000 and the annual interest rate is 2% in Canada and 3% in Australia is there an arbitrage opportunity?

Problem 1: According to Interest Rate Parity, if the interest rate decreases in one country relative to another, we expect the exchange rate of that country to

Reference no: EM132911039

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