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American dollar spot rate is 6.5761, 180 days forward rate is 6.6272; The annual interest on American dollars is 1.5% in New York. The annual
American dollar spot rate is 6.5761, 180 days forward rate is 6.6272;
The annual interest on American dollars is 1.5% in New York.
The annual interest on Chinese Yuan is 3.05% in China Construction Bank.
There is no bid ask spread on the spot and forward. So
What would be the profit that an arbitrager strategy can make based on 100,000 transaction and 180 days horizon.
Select one:
a. 7.884
b. 1015.32
c. 503. 78
d. 1525
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