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QUESTION 4 You own $10000. The dollar rate in Zurich is 2.0183 Franc/$. The Franc rate in New York is given in the table below

QUESTION 4

You own $10000. The dollar rate in Zurich is 2.0183 Franc/$. The Franc rate in New York is given in the table below

COUNTRYCONTRACT$ / FOREIGN CURRENCY
CanadadollarSpot0.8437
30-day0.8417
90-day0.8395
JapanyenSpot0.004684
30-day0.004717
90-day0.004781
SwitzerlandfrancSpot0.5139
30-day0.5169
90-day0.5315
Is arbitrage profit possible? Set up an arbitrage scheme with your capital. What is the gain (loss) in dollars?

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