Spot rat 1 US $ = Rs.48.0123
180 days Forward rate for 1 US $ = Rs.48.8190
Annualised interest rate for 6 months – Rupee
= 12%
Annualised interest rate for 6 months – US $ =
8%
Is
there any arbitrage possibility? If yes how an arbitrageur can take advantage
of the situation, if he is willing to borrow Rs.40,00,000 or US $83,312.
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