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2. The interest rates in Hungary (Forint) and Sweden (Krona) are 9% and 3% respectively and the rates of inflation are 6.5% and 1.5% respectively.

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2. The interest rates in Hungary (Forint) and Sweden (Krona) are 9% and 3% respectively and the rates of inflation are 6.5% and 1.5% respectively. The spot rate is 29.45 Forint/Krona and the 1-year forward rate is 31.15. Is there an arbitrage opportunity? If so, how would you take advantage of it

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