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Question: suppose an investor obtains the following quotes with bidask spread...

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Suppose an investor obtains the following quotes (with bid-ask spread) from his/her bank:

Capital markets 90-day interest rate in Australia 2.5% p.a.-3.8% pa. 90-day interest rate in Switzerlan<d 3% р.а.-3.5% pa.

Currency markets (AS/SFr) Spot market 1.3424 -1.3534 90-day forward market 1.3258 -1.3378

Do you find any arbitrage opportunity? If yes, explain what would you do to capture the arbitrage profit? If no, explain why.

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