You own $10,000. The dollar rate on the Swiss franc is 1.380 SFs.
|
Country
|
Contract
|
US Dollar
Equivalent
(Direct)
|
Currency
per US$
(Indirect)
|
|
Switzerland
|
Spot
|
0.7282
|
1.3733
|
|
(Franc)
|
30-day future
|
0.7290
|
1.3716
|
|
90-day future
|
0.7311
|
1.3677
|
Based on the table above, are arbitrage profits possible? What is the gain (loss) in dollars?