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Suppose that today 2-month forward contracts on euro for August 13th, 2019 delivery are available for F ($1.05/Euro). Assume that on July 13 2019 the
Suppose that today 2-month forward contracts on euro for August 13th, 2019 delivery are available for F ($1.05/Euro). Assume that on July 13 2019 the one month forward contracts (for August 13 2019) on euro are available for F ($1.19/Euro). Explain a strategy to create a riskless fixed amount of profit. (Show calculations and draw one graph showing all positions and the combined strategy). No interest rate is given.
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