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The spot price for the British Pound Sterling is currently 2.2324 $/. Also, currently the six-month US LIBOR and the six-month British LIBOR are 5.5%

The spot price for the British Pound Sterling is currently 2.2324 $/. Also, currently the six-month US LIBOR and the six-month British LIBOR are 5.5% and 8.75% per annum respectively. If the quoted six-month futures price for the pound sterling is 2.1750 $/ describe a strategy a US investor could use to take advantage of this arbitrage opportunity.

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