Suppose That the Interbank Forward Bid for March 20 on Swiss

question 1

Multiple Choice

Suppose that the interbank forward bid for March 20 on Swiss francs is $0.7827 at the same time that the price of IMM Swiss franc futures for delivery on March 20 is $0.7795.How much of an arbitrage profit could a dealer earn per March Swiss franc futures contract of SFr 125,000?

• A)$400
• B)$68
• C)$215
• D)$58

---

Definitions:

German Emperor

The title used for the monarch and head of state of Germany, particularly associated with the rulers of the German Empire from 1871 to 1918.

William II

William II, also known as Wilhelm II, was the last German Emperor (Kaiser) and King of Prussia, ruling from 1888 until his abdication in 1918.

Militarist

An advocate for the maintenance of strong military capabilities and the readiness to use force to protect or promote national interests.

Anti-Semitism

Prejudice, discrimination, or hostility directed against Jewish people.