The 3-month interest rates with The United Kingdom and The United States are, respectively, 4% and 6% per annum (please select an interest rate larger than 4% up to two decimal points. Selected numbers must be different than 0). The spot exchange price is USD/GBP 0,72 (0,72 pence per US dollar). The futures price for a contract deliverable in one year is quoted as 0,73. Is there an arbitrage opportunity? If there is, what strategy would you follow and what would be the arbitrage profit of that strategy?
