Question: Table above shows the annual interest rate (annually compounded) and exchange rates against the dollar for different currencies. Are there any arbitrage opportunities? If so,

Table above shows the annual interest rate (annually compounded) and exchange rates against the dollar for different currencies. Are there any arbitrage opportunities? If so, how would you secure a positive cash flow today, while zeroing out all future cashflows?

Interest Rate (%) Spot Exchange Rate 1-Year Forward Exchange Rate United States (dollar) Costaguana (pulga) Westonia (ruple) Gloccamorra (pint) Anglosaxophonia (wasp) 23 10,000 11,942 2.6 17.1 2.3 2.65 18.2 4.1 2.28

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