Question: Same fact pattern as the prior question: Casper Landsten is a foreign exchange trader who has access to ( $ 1 ) million (or its
Same fact pattern as the prior question: Casper Landsten is a foreign exchange trader who has access to \\( \\$ 1 \\) million (or its Swiss Franc equivalent). Assume the spot exchange rate \\( (\\mathrm{SFr} / \\$) \\) is \\( \\mathrm{SFr} 1.278 / \\$ \\) and the 2 -month forward rate is SFr1.275/\\$. Also assume that the US dollar 2 -month interest rate (annualized) is \3.6 and that the Swiss franc 2 -month interest rate (annualized) is \2.4. Calculate the total dollar profit earned via arbitrage: \\( \\$ 672 \\) \\( \\$ 1,358 \\) \\( \\$ 0 \\) \\( \\$ 362 \\) \\( \\$ 4,357 \\)
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