Question
A is a foreign exchange trader for a bank in Germany, seeking arbitrage opportunities between European market and US market. The information about spot/forward exchange
A is a foreign exchange trader for a bank in Germany, seeking arbitrage opportunities between European market and US market. The information about spot/forward exchange rate , interest rates between U.S. dollar and euro are as following:
| Assumptions |
| Value | ||
| Arbitrage scale ($ or ) |
|
|
| 4,000,000.00 |
| Spot exchange rate ($/) |
|
|
| 1.1000 |
| 3-month forward rate ($/) |
|
|
| 1.1055 |
| US dollar 3-month interest rate |
|
|
| 2.500% |
| Euro 3-month interest rate |
|
|
| 5.500% |
Is it possible to make CIA profit ?
If the CIA profit exists, list the process and the final profit. If not ,explain why.
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The Nft Guide Learn How To Buy Sell Collect And Mint Non Fungible Tokens
Authors: Thomas Jase
1st Edition
