Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade Bid Ask GBPUSD (spot) 1 6127 1 6138 GBPUSD (F30) 1 6312 1 6352 r GBP 5 40 5 60 r US 6 90 7 10 Please calculate both directions and provide the answers In your answer below, you could provide a 3x3 table (see the top right corner of the text box) and add the following Profit Loss Preferred direction (Y N) Home Foreign

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Question: Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade Bid Ask GBPUSD

Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade

	Bid	Ask
GBPUSD (spot)	1.6127	1.6138
GBPUSD (F30)	1.6312	1.6352
r GBP	5.40%	5.60%
r US	6.90%	7.10%

Please calculate both directions and provide the answers. In your answer below, you could provide a 3x3 table (see the top right corner of the text box) and add the following:

	Profit/ Loss	Preferred direction (Y/N)
Home	?	?
Foreign	?	?

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