Arbitrage opportunity-could profit


The spot rate for canadian dollar to Brazllian real is 1.676 BRL/CAD. The 6 month forward rate is 1.680. The risk free rate (annual) in Canada is 2.5%, while in Brazil it is 4%. is there an arbitrage opportunity? if so, show how someone with $1000 could profit?

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Business Management: Arbitrage opportunity-could profit
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