【多选题】Paf is a country with a fixed exchange rate with the U.S. dollar, set at 0.9 pifs per dollar. The Paf government intends to defend this central parity but has no exchange controls; it can only use an ...
A.
To take advantage of a devaluation of the pif, you could borrow bif for dollar and lend them in US.
B.
If Paf is successful in defending its currency, your arbitrage may fail.
C.
If the pif is devaluated to 1 pif per dollar within the next month, your arbitrage may gain.
D.
Whatever you do, you may lose du to the fluctuation of Pif.