in 1994, Argentina's currency board was in place, and 1 peso was exchangeable into 1 dollar. the following interest rates were available:
US LIBOR 90 days: 3.25%
Peso 90 day deposits: 8.99%
Dollar interest rate in Argentina, 90 day deposits: 7.10%
what is the risk difference between the 7.10% dollar interest and 3.25% LIBOR reflect?
what risk does the difference between the rate on 90 day pesos and 90 day dollar deposits by Argentine banks reflect?