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Does anyone can help me figure out question 7? Thanks. Given the above market quotations, is there an arbitrage opportunity? Justify. If you are given

Does anyone can help me figure out question 7? Thanks.

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Given the above market quotations, is there an arbitrage opportunity? Justify. If you are given $1,000,000, how much profit can you make? Show your steps. If you are given 1,000,000, how much profit can you make? Show your steps. Given the following FX market information, calculate the annualized 30-day, 90-day, and 180-day forward discounts for the Canadian dollar. Spot: C$1 = $1.0078 30-day forward: C$1 = $ 1.0073 90-day forward: C$1 = $1.0069 180-day forward: C$1 = $1.0066 The 30-day forward discount is: [($1.0073 - $1.0078)/$1.0078] times 12 = -0.60% The 90-day forward discount is: [($1.0069 - $1.0078)/$1.0078] times 4 = -0.36% The 180-day forward discount is: [($1.0066 - $1.0078)/$1.0078] times 2 = -0.24% Suppose Credit Suisse quotes spot and 90-day forward rates on the Swiss franc of $0.7957-60, 8-13

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