Course: Money & Capital Markets
Answer ASAP
b) Consider the following information Spot rate \( =2 \) Euro \( / \$ \) RUS \( =10 \% \) Forward rate one period ahead \( =1.8 \) Euro \( / \$ \) \( \mathrm{R}_{\mathrm{E}}=5 \% \) Show through your workings, your arbitrage profit if you start with US\$100. (5 marks)
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