Problem
Write a pledge that homework solutions represent your own work and that you did not copy solutions from the work of other students.
• Superinse that the spot rale of [UR is 1.1250) USD for 1 Itum, 1 year forward zale is 1.1440 USD far 1 Cum. Suppose that the I year USD interest rate is 1.50%% annualized and Eure interest rate is 0.001% annualized trates are compounded annually that means for example that I USD a year from now grow's to ]*(1+1.503) USD), Is here an arbitrage opportunity? If there is describe it.