Compare the forward price to the futures price

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Question - Using the forward rates, combined with the current interest rates from CNBC Bonds page, evaluate if interest rate parity holds for the UK/USD exchange rate predicted for 1 year from now. (Note: you can use bid/ask midpoint).

Show the arbitrage profits available if you have $1,000,000 to invest.

Compare the forward price to the futures price. How would you arbitrage this difference? Show the steps you would take and the profits available to a $1,000,000 investment.

Reference no: EM132194291

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