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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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