Page 2 Question 19 (1 point) Suppose that the forward ask price for March 20 on euros is $0.9127 at the same time that the price of IMM euro futures for delivery on March 20 is $0.9145. What is the best way for an arbitrageur to profit from this situation? 2 0 Page 3 Buy futures and buy euros forward Buy futures and sell euros forward 3 Sell futures and sell euros forward Page 4 Sell futures and buy euros forward Previous Page Next Page Page 19 of 30 o Type here to search AENG 23/0/ Page 1: Previous Page Next Page Page 20 of 30 1 Page 2 Question 20 (1 point) If the one-year interest rate is 3% on Swiss francs and 7% on U.S. dollars, and the exchange rate is currently SFr 1 = $0.94, what does the International Fisher Effect suggest the spot rate will be in 5 years? (Use the US Dollar as the reference currency and enter your answer as a whole number with no symbols. For example, if you compute $1.2345/SFr, enter "1.2345") 2 Page 3: Your Answer: 3 Page 4 Answer 4 Previous Page Next Page Page 20 of 30 Submit Que 0 of 30 questions saved Type here to search 0 of DENG 21/01/20 Page 1 Previous Pape Next Page Page 21 of 30 1 Page 2 Question 21 (1 point) Suppose that the forward ask price for March 20 on euros is $0.9127 at the same time that the price of IMM euro futures for delivery on March 20 is $0.9145. What will be the arbitrageur's profit per futures contract (size is 125,000)? 2. $550 per euro futures contract arbitraged Page 3 3 $225 per euro futures contract arbitraged $114.312.50 per euro futures contract arbitraged Page 4 O $114,087.50 per euro futures contract arbitraged Previous Page Next Page Page 21 of 30 $ Type here to search 0 A DENG 1107 20