The two-month interest rates in switzerland and the united


The two-month interest rates in Switzerland and the United States are 1% and 2% per annum, respectively, with continuous compounding.

The spot price of the Swiss franc is $1.06. The futures price for a contract deliverable in two months is $1.05. What arbitrage opportunities does this create?

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Financial Management: The two-month interest rates in switzerland and the united
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