The risk free rate of interest rate in USA is 8% p.a. and in UK is 5% p.a. The spot exchange rate between US $ and UK E is 1$ = 0.75. Assuming that is interest is compounded on daily basis then at which forward rate of 2 year there will be no opportunity for arbitrage. Further, show how an investor could make risk-less profit, if two year forward price is 1$ = 0.85 . Given e.-06 = 0.9413 & e = 0.852, e = 1.1735, e = 0.9051 -0.16 0.16 -0.1