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IFM - Chapter 5 by storkydd is a document available to read on EtoBox.

There is no arbitrage opportunity if: Sb < F < Sa Where: - Sb is the bid spot rate - F is the theoretical forward rate from IRP - Sa is the ask spot rate The bid-ask spread prevents perfect arbitrage. We need prices to move beyond the spread for a riskless profit opportunity.

Author

storkydd

Language

EN