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illustrate the arbitrage strategy in detail and its profit please 5. Suppose that USD-sterling spot and forward exchange rates are as follows: Spot 90-day forward

illustrate the arbitrage strategy in detail and its profit please image text in transcribed
5. Suppose that USD-sterling spot and forward exchange rates are as follows: Spot 90-day forward 180-day forward 1.5580 1.5565 1.5527 What opportunity is open to an arbitrageur if a 180-day European call option to buy 1 for $1.52 costs 2 cents? Illustrate the arbitrage strategy in detail and its profit

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