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Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade Bid Ask S

Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade

Bid

Ask

S

EURUSD

1.1234

1.1241

F30

EURUSD

1.1328

1.1332

rate

USD

3.32%

3.38%

rate

EUR

2.12%

2.16%

Please calculate both directions and provide the answers. In your answer below, you could provide a 3x3 table (see the top right corner of the text box) and add the following:

Profit/Loss

Preferred direction (Y/N)

Home

answer

answer

Foreign

answer

answer

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