The two month interest rates in Switzerland and the US are 2% and 5% per annum, respectively, with continuous compounding. The spot price of Swiss franc, as quoted in the Wall Street Journal, is 0.80. This means that 1 USD buys 0.80 CHF. Calculate the futures price for a contract deliverable in two months. (Hint: rememberthat in the futures marketforeign exchangerates are quoted interms of USD per foreign currency) If a futures contract for Swiss Franc, deliverable in two months, sells for $1.2346/CHF what arbitrage opportunities exists and how would you execute it? a. b. The two month interest rates in Switzerland and the US are 2% and 5% per annum, respectively, with continuous compounding. The spot price of Swiss franc, as quoted in the Wall Street Journal, is 0.80. This means that 1 USD buys 0.80 CHF. Calculate the futures price for a contract deliverable in two months. (Hint: rememberthat in the futures marketforeign exchangerates are quoted interms of USD per foreign currency) If a futures contract for Swiss Franc, deliverable in two months, sells for $1.2346/CHF what arbitrage opportunities exists and how would you execute it? a. b