Que1-James Clark is a foreign exchange trader with Citibank. He notices the following quotes. Spot exchange rate SFr1.2051/$ Six-month forward exchange rate SFr1.1922/$ Six-month $ interest rate 2.5% per year Six-month SFr interest rate 2.0% per year Is the interest rate parity holding? You may ignore transaction costs. Is there an arbitrage opportunity? If yes, show what steps need to be taken to make arbitrage profit. Assuming that James Clark is authorized to work with $1,000,000, compute the arbitrage profit in dollars.
Answers
Answered by
1
Answer:
" (and any subsequent words) was ignored because we limit queries to 32 words.
Similar questions