Consider followings: Foreign currency = euro. Local risk-free rate (r) = 2% annual. Foreign risk-free rate (rf) = 3% annual. Exchange rate = $/euro. The current market exchange rate (S0) = 1.5.Suppose the current market two year futures price (F0) = 1.4. Is there any arbitrage profit? If there is any arbitrage profit, compute the profit. Assume that you take a loan in Germany. The loan = euro 1000.