Calculate the swap rate with spot DM selling price and forward buying price
The swap rate = (0.6450-0.6250) *100%/0.6450 = 3.1008%, which is less than the spread of 4%.
(2) If the swap rate is less than the spread, arbitrage is beneficial, that is, it is beneficial to borrow low-interest currency dollars and convert them into high-interest currencies.
Borrow $6,543.8+0,000, immediately convert it into DM (price 0.6450), invest 654.38+0 years, and sign a contract to sell the principal and interest of $6,543.8+0,000 DM a year (price 0.6250). Take out the principal and interest of DM at maturity, convert it into USD according to the contract, and subtract the principal and interest of borrowed USD, which is the arbitrage profit:
1000000/0.6450 * (1+10%) * 0.6250-100000 * (1+6%) = 589/kloc-0.
2.( 1)DM/SFr = 1.3899/ 1.6920 = 0.82 15
(2)DM/SFr cannot be calculated.
(3)DM/SFR =( 1.3894/ 1.6922)/( 1.3904/ 1.69 17)= 0.82 1 1/0。
(4) GBP/DM = (1.6808 *1.6917)/(1.6816 *1.6922) = 2.
3. Same as 1