Can ferd make an arbitrage profit on this situation

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Ferd Rumpledink at UBS now observes the data below for the USD and the CHF. He still has 10,000,000 USD or the CHF equivalent (at the current spot rate) to invest for 180 days. Can Ferd make an arbitrage profit on this situation? How much and in which currency? Should he invest CHF or USD? Show your work on a block diagram like the ones we used in class for covered interest arbitrage. Spot rate (CHF/USD) 1.1861 180-day forward rate (CHF/USD) (not annualized) 1.1760 180-day U.S. dollar interest rate (annualized) 4.900% 180-day Swiss Franc interest rate (annualized) 5.100%

Reference no: EM131025554

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