Does there exist arbitrage chance without risks

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If the interest rate per annum of mark is 5% and that of dollar is 2%. The spot rate is $1 = DM1.6040-1.6080, the dollar 3-month forward premium against mark is 20 approximately 40 points. Please answer the following question: 3-months forward rate;

If there is no transaction cost and capital control, then does there exist arbitrage chance without risks ?

If there does, how to operate? To calculate the net profit with $1000.

Reference no: EM131928213

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