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Thinking of carrying out an arbitrage transaction, you collected the following information. Do you think there is an arbitrage opportunity? (Assume $1,000,000 investment) Bid Ask

Thinking of carrying out an arbitrage transaction, you collected the following information. Do you think there is an arbitrage opportunity? (Assume $1,000,000 investment)

Bid

Ask

Interest rate

Borrow

Lend

Spot ($/)

1.4

1.43

$

4.2 %

4.1 %

Forward360 ($/)

1.48

1.53

3.8 %

3.65 %

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