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2. Using the CME Group prices, evaluate the 3 month price for arbitrage in the EUR/USD futures contract. Assume the risk-free rate in the U.S.

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2. Using the CME Group prices, evaluate the 3 month price for arbitrage in the EUR/USD futures contract. Assume the risk-free rate in the U.S. is 2.0% (annualized) and the risk-free rate in Europe is -1% (annualized). (a) show the arbitrage profits that you can make with one contract (125,000 euros) (b) show that you earn the same profits in three months if the EUR/USD = $1.10 as you would if the EUR/USD = $1.50

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