Thinking of carrying out an arbitrage transaction, you collected the following information. Do you think there is
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Question:
Thinking of carrying out an arbitrage transaction, you collected the following information. Do you think there is an arbitrage opportunity? (Assume $1,000,000 investment)
Bid | Ask | Interest rate | Borrow | Lend | |
Spot ($/€) | 1.4 | 1.43 | $ | 4.2 % | 4.1 % |
Forward360 ($/€) | 1.48 | 1.53 | € | 3.8 % | 3.65 % |
Related Book For
Understanding Basic Statistics
ISBN: 978-1111827021
6th edition
Authors: Charles Henry Brase, Corrinne Pellillo Brase
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