International Financial Management 2nd Edition by Geert Bekaert ,Robert Hodrick

تمرين 10

Suppose you saw a set of quoted prices from a U.S. bank and a French bank such that you could borrow dollars, sell the dollars in the spot foreign exchange market for euros, deposit the euros for 90 days, and make a forward contract to sell euros for dollars and make a guaranteed profit. Would this be an arbitrage opportunity Why or why not