Prior to the establishment of the currency swap market, capitalizing on such arbitrage opportunities did not require use of the currency forward market.

Question

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Prior to the establishment of the currency swap market, capitalizing on such arbitrage opportunities did require use of the currency forward market. Currency swaps allow for a more efficient and flexible way to hedge currency risk and take advantage of arbitrage opportunities, but the forward market was still used before the swap market existed.

Prior to the Establishment of the Currency Swap Market, Capitalizing