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Assuming you have access to a 12 month FOREX AUD/USD (info provided below) swap contract and bank loan markets in both countries; engineer a portfolio

Assuming you have access to a 12 month FOREX AUD/USD (info provided below) swap contract and bank loan markets in both countries; engineer a portfolio to secure and create any arbitrage opportunities.

Spot conversion rate: 0.74 AUD/USD

12-moth FOREX rate: 0.7 AUD/USD

Aus bank loan rate: 2.5-2.8% and US bank loan rate: 3-3.4%

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