Interest Rate Parity If your home country is the U.S. and based on the following information, can you take advantage of an arbitrage strategy? Forward MXN/USD 0.0479 Time (months) 2.00% 3 3.00% 0.0478 Spot MXN/USD No, because you would profit $50,000 in the U.S. which is more than the $46,077.41 you would from an arbitrage strategy. Yes, because your annual return would be 3.84% No, because you would lose $3,922.59 Yes, because would you will make a profit without investing your own money