There arbitrage profits for american or swiss investors

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Reference no: EM132039080

Assume the following information:U.S. investors have $1,000,000 to invest: 1-year deposit rate in the U.S.=2% 1-year deposit rate in Switzerland =1.5% 1-year forward rate of Swiss francs=$.7430 Spot rate of Swiss franc =$0.75 Given this information, are there arbitrage profits for American or Swiss investors? How much? Assume $1 Million Arbitrage Capital in U.S. dollars (or its equivalent in Swiss Francs).

Reference no: EM132039080

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