Question: Please use clear handwriting and in step by step solution. thanks Spot rate is 0.9711 CHF/$ 1 year forward rate is 1.3043 CHF/$ U.S interest

Please use clear handwriting and in step by step solution. thanks

Please use clear handwriting and in step by step solution. thanks Spot

Spot rate is 0.9711 CHF/$ 1 year forward rate is 1.3043 CHF/$ U.S interest annual rate is 1.85% Switzerland interest annual rate is 3.07% Borrowing rate = lending rate, no bid-ask spread on the spot and forward rate. What would be the profit using an arbitrager strategy if he can borrows 100$ or 100CHF

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