Assume the interest rate of 1-year risk free debt denominated in US dollars is 2.75% and the interest rate on 1-year risk free debt denominated in Russian rubles is 7.25%. the spot market exchange rate for the Russian ruble (USD/RUB) is 61.24

If the actual 1-year forward exchange rate for Russian rubles is 63.81 and the spot market exchange rate and interest rates are as indicated , what trades should you make to take advantage of the arbitrage opportunity? Be specific about both current and future transactions (i.e., be sure to specify what currency/currencies are involved and how, and the amount of each you can make any assumption you like about the amount of currency to start). How profitable is the trade? (State the profitability, either in dollars or rubles and as a percent of initial amount borrowed.)

Assume the interest rate on 6-month risk free debt denominated in US dollars is 2.50%, the interest rate on 6-month risk free debt denominated in Tanzania shillings is 9.00%. If the spot market exchange rate for the Tanzanian shilling (USD/TZS) is 2287.4, what must the 6-month forward rate on the Tanzanian shilling be if interest rate parity holds?

If the 6-month forward exchange rate for the Tanzanian shilling 2365.2 and the spot market exchange rate and interest rates are as indicated previously, what trades should you make to take advantage of the arbitrage opportunity? Be specific about both current and future transactions (i.e., be sure to specify what currency/currencies are involved and how, and the amount of each you can make any assumption you like about the amount of currency to start). How profitable is the trade? (State the profitability, either in dollars or shillings and as a percent of initial amount borrowed.)