How much risk-free arbitrage profit could you make on 1


Suppose you observe the following 1-year interest rates, spot exchange rates and futures prices: i€= 3%; i$= 4%; S0($/€)=$1.45/€; F360-day ($/€)=$1.48/€. Futures contracts are available on the size of €10,000 per contract. How much risk-free arbitrage profit could you make on 1 contract at maturity from this mispricing? No arbitrage profit exists. $159.22 $153.10 $439.42.

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Financial Management: How much risk-free arbitrage profit could you make on 1
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