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Question 2 10 / 10 pts Assume that S(ILS/INR) = 0.0470 and that F(ILS/INR) = 0.0461 (ILS = Israeli New Shekel; INR = Indian Rupee).

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Question 2 10 / 10 pts Assume that S(ILS/INR) = 0.0470 and that F(ILS/INR) = 0.0461 (ILS = Israeli New Shekel; INR = Indian Rupee). The interest rate in India is 3.40%, while the interest rate in Israel is 0.10%. Also assume that you can invest either INR 10 million or ILS 1 million. Show the arbitrage profit. ILS 53,186.55 INR 572,811.28 ILS 132,000.00 Correct! ILS 13,200.00 INR 5,728,112.80 Question 2 10 / 10 pts Assume that S(ILS/INR) = 0.0470 and that F(ILS/INR) = 0.0461 (ILS = Israeli New Shekel; INR = Indian Rupee). The interest rate in India is 3.40%, while the interest rate in Israel is 0.10%. Also assume that you can invest either INR 10 million or ILS 1 million. Show the arbitrage profit. ILS 53,186.55 INR 572,811.28 ILS 132,000.00 Correct! ILS 13,200.00 INR 5,728,112.80

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