Con Following information. The interest rate are annual and forward contract at your forward borrowin tending Die s 39 Spot $1.00 C1.00 $1.01 1.00 58 69% Forward $0.99 = 1.00 $1.00 1.00 Are you able to make money out of the tradings of $ and ? Yes, borrow 1,000 at 6%; Trade for $ at the bid spot rate $1.00 = 1.00; Invest $1,000 at 4.5%; Hedge this with a forward contract on 1,045 at $1.00 - 1.00; Receive 1,045 O Can't decide, as there is not enough information O No; the trading costs are too high Yes, borrow $1,000 at 4%; Trade for at the ask spot rate $1.01 = 1.00; Invest 990.10 at 5.5%; Hedge this with a forward contract on 1,044.55 at $0.99 = 1.00; Receive $1,034.11 Con Following information. The interest rate are annual and forward contract at your forward borrowin tending Die s 39 Spot $1.00 C1.00 $1.01 1.00 58 69% Forward $0.99 = 1.00 $1.00 1.00 Are you able to make money out of the tradings of $ and ? Yes, borrow 1,000 at 6%; Trade for $ at the bid spot rate $1.00 = 1.00; Invest $1,000 at 4.5%; Hedge this with a forward contract on 1,045 at $1.00 - 1.00; Receive 1,045 O Can't decide, as there is not enough information O No; the trading costs are too high Yes, borrow $1,000 at 4%; Trade for at the ask spot rate $1.01 = 1.00; Invest 990.10 at 5.5%; Hedge this with a forward contract on 1,044.55 at $0.99 = 1.00; Receive $1,034.11