Hello!

Can you please help me with calculations of synthetic forward an how to check for arbitrage opportunities?

With best regards

Waleed

1 . Synthetic forwards Suppose that you are quoted the following NZD / FC spot and forward rates :" Spot bid-ask 3 - mo. forward p. a .` 3 month 6 - mo . forward p. a . 6 month bid -ask Euro - interest bid- ask Euro - interest NZD 5. 65- 5. 90 5. 47 - 5.82 USD 0. 5791 - 0. 5835 0 . 5821 - 0.5867 3.63 - 3.88 0 . 5839 - 0. 5895 3. 94 - 4.19 FUR 0. 5120- 0. 5159 0 . 5103 - 0. 5142 6.08- 6.33 0. 5101 - 0. 5146 5. 60 - 6. 25 DKK 3. 3890 - 3.4150 3.3350- 3. 4410 6. 05 - 6.30 3.3720 - 3. 4110 5. 93 - 6.18 CAD 0. 5973 - 0. 6033 0 . 5987 - 0. 6025 1. 71 - 1.96 0. 5023- 0. 509.9 2. 47 - 2. 75 GBP 0. 3924- 0. 3954\\ 0 . 3933 - 0. 3.989 5. 09 - 5.34 0. 3929- 0. 3001 5. 10- 5.35 ( a ) What are the three-month synthetic- forward NZD / U.S'D bid-ask rates ?! ( b ) What are the six- month synthetic- forward NZD / FUR bid- ask rates ? ( C ) What are the six - month synthetic- forward NZD / DKK bid- ask rates ? ( d ) What are the three - month synthetic- forward NZD / CAD bid-ask rates ? ( e ) In a -d , are there any arbitrage opportunities ? What about least cost dealing* at the synthetic rate ?"