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At present, the dollar is trading against the British pound at spot GBP/USD = 1.1517,...

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Accounting

At present, the dollar is trading against the British pound at spot GBP/USD = 1.1517, and at one-year (365-day) forward at 64 forward points. One-year (360- day) eurodollar deposits for the U.S. dollar is 5.39%, while half-year (180-day) eurosterling is 4.11%. Using the covered interest parity condition, determine if: (b) explain how you may exploit this opportunity, if any?

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