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You're financial speculator. Current exchange rate is 4,22 PLN/EUR. There is a 2Y forward available for a EUR/PLN exchange rate with an execution price of

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You're financial speculator. Current exchange rate is 4,22 PLN/EUR. There is a 2Y forward available for a EUR/PLN exchange rate with an execution price of 0,2214 EUR/PLN. Assume that market rates in PL are 7% and 3% in Euro Zone. In which currency should you take a loan at currently moment in order to realize an arbitrage strategy in the future? Select one: a. arbitrage is not possible O b. EUR c. insufficient data to determine an arbitrage strategy O d. PLN

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