Question
If the interest rate is higher than the one you were supposed to find in previous question (1.18%) , then A) You can make an
If the interest rate is higher than the one you were supposed to find in previous question (1.18%), then
A) You can make an arbitrage and your arbitrage strategy, among other things, will include borrowing money and buying a forward contract
B) You can make an arbitrage and your arbitrage strategy, among other things, will include borrowing money and selling a forward contract
C) You can make an arbitrage and your arbitrage strategy, among other things, will include investing money and buying a forward contract
D) You can make an arbitrage and your arbitrage strategy, among other things, will include investing money and selling a forward contract E) You cannot make an arbitrage
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