Your assumptions and link with the concept of arbitrage

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Given the following exchange rates GBPARS 19.5, GBPUSD 1.3 and USDARS 14.25 If the 180-day forward rate for the dollar were GBPARS 21.45 what does this tell you about inflation in Argentina, explain your assumptions and the link with the concept of arbitrage. Answer in 180 words.

Reference no: EM131620893

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