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6. Reviewing recent market data, the following catches your attention: Country A 8.50% Country B 3-mo int rates B/A spot 90-day forward 6.25% 2.5000 2.2550

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6. Reviewing recent market data, the following catches your attention: Country A 8.50% Country B 3-mo int rates B/A spot 90-day forward 6.25% 2.5000 2.2550 a. Absent transaction costs, is there an arbitrage opportunity? (10 marks) b. What is likely to reduce the opportunity

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