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You have the following market data. Spot price for the Euro is $1.121 per Euro....

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Finance

You have the following market data. Spot price for the Euro is $1.121 per Euro. Three-month forward price is $1.076 per Euro. U.S. dollar LIBOR for three months is a continously compounded rate of 2.54% per annum. Euro LIBOR for three months is a continuously compounded rate of 2.77% per annum. Underlying asset for this contract (i.e., the quantity of Euros to be delivered in three months) is 100,000 Euros. What is the total net profit if you execute the arbitrage strategy?

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