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

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

Bid

Ask

S

PLNUSD

0.2767

0.2771

F90

PLNUSD

0.2716

0.2723

rate

USD

3.02%

3.05%

rate

PLN

1.81%

1.86%

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

answer

answer

Foreign

answer

answer

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