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Explain how an individual would profit from financial

Suppose the following situation prevails in the foreign exchange and Eurocurrency market for the euro and British pound. one- year Eurocurrency rates - Euro = 3.125% British pound 4.250%. Exchange rate- spot = 1.5245 Euro/pound. One- year forward 1.4575 Euro/pound.

Explain how an individual would profit from financial arbitrage in this situation. Calculate the % return the individual would earn from undertaking arbitrage activity.

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Finance Basics: Explain how an individual would profit from financial

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