Please use the real world data to create a case of the Rectangular arbitrage(Covered Interest arbitrage).

Please hand write and hand draw the case and numerical computation on a piece of paper.

Then SCAN the paper and submit the scanned handwriting.

Each one problem is weighted 5%.

Data source (1%)

Picture (1%)

Explanation (1%)

Computation (1%)

Neatness (1%)

If the file is not readable, ZERO point is given.

The information you need in the rectangular arbitrage is forward rate of one foreign currency, interest rate of that currency,and the interest rate of domestic currency, and a spot rate of that currency.