The 2-month interest rates in switzerland and the united, Ask an Expert

Economics

The 2-month interest rates in Switzerland and the United States are, respectively, 1% and 2% per annum with continuous compounding. The spot price of the Swiss franc is $1.0500. The futures price for a contract deliverable in 2 months is also $1.0500. What arbitrage opportunities does this create?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M91236877

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