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2. (10) Here are some price the international money markets: Spot rate 73.708 Indian Rupees per US dollar 180-day forward rate 76.200 Indian Rupees per

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2. (10) Here are some price the international money markets: Spot rate 73.708 Indian Rupees per US dollar 180-day forward rate 76.200 Indian Rupees per US dollar Annual India interest rate 8.5%, represents both borrowing and lending rate Annual U.S. interest rate 4.60%, represents both borrowing and lending rate Given above information, calculate the arbitrage profit assuming the US investor can borrow and invest $400,000 for the next 180 days. Show all your calculations

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