Currency Units:
E.g. Currency $: 0.6650/DM (Spot)
Currency $: 0.6700/ DM (3-months)
Interest Rates:
DM: 7.00% per annum
Currency $: 9.00% per annum
Calculate arbitrage gain possible from the above data.         (Mumbai University, April, 2002)
(Ans.: Formula 1 – Positive Borrow Home. Invest foreign Gain 2,650 CAD an investment of      1 million CAD. Formula 2 – Negative Reject)
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