Assuming borrowing rate lending rate and no bid-ask spread, Financial Management

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Assuming borrowing rate lending rate and no bid-ask spread

Assuming that the current Euro spot rate is 3.1909 TRY and the 90 days' forward rate is 3.4029 TRY. The annual interest rate on euro in Europe 1.02% and the annual interest rate on Turkish Lira in Turkey is 7.15%. How an arbitrager can profit on the discrepancy in rates based on a 1000 TRY transaction and 90 days horizon (assuming borrowing rate = lending rate and no bid-ask spread on the spot and forward)?

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Financial Management: Assuming borrowing rate lending rate and no bid-ask spread

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Financial Management: Assuming borrowing rate lending rate and no bid-ask spread

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