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Please show work 3) CIP: You are told that the current exchange rate on the Russian rouble is .0336 .0338 $/rouble on the spot market.

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3) CIP: You are told that the current exchange rate on the Russian rouble is .0336 .0338 $/rouble on the spot market. An investment bank quotes you a rate of .0310 - 0316 $/rouble for a 12-month forward exchange contract. Assume that the 12-month investment and borrowing rates in the US are 1% and 1.5% (annual) respectively. What range of risk-free rates in Russia do not allow arbitrage? 3) CIP: You are told that the current exchange rate on the Russian rouble is .0336 .0338 $/rouble on the spot market. An investment bank quotes you a rate of .0310 - 0316 $/rouble for a 12-month forward exchange contract. Assume that the 12-month investment and borrowing rates in the US are 1% and 1.5% (annual) respectively. What range of risk-free rates in Russia do not allow arbitrage

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