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James Clark is a foreign exchange trader with Citibank. He notices the following quotes. table [ [ Spot exchange rate,USD 1 . 2 0
James Clark is a foreign exchange trader with Citibank. He notices the following quotes.
tableSpot exchange rate,USDSFrSixmonth forward exchange rate,USDSFrSixmonth $ interest rate, per yearSixmonth SFr interest rate, per year
Is there an arbitrage opportunity? If yes, determine the arbitrage profit in Swiss Francs. Assume that James Clark is authorized to work with $ Input your answer without any currency information.
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