(1) is converted into pounds at the spot (exchange rate 1.5780), invested, recovered at maturity, and sold (exchange rate 1.6243), minus the opportunity cost of USD, which is the profit:100000/1.

(2) Calculate the swap rate between the spot bid price and the forward bid price: (1.5940-1.5770)/1.5770 =1.077%, which is less than the spread. Arbitrage can be carried out: the pound is converted into dollars at the spot, invested, and the dollar is signed and sold one year later.

1 * 1.5770 * ( 1+ 10%)/ 1.5940- 1 * ( 1+8%) = 0.0082685.

3。 Judge:

Conversion to the same price method:

Let the spot exchange rate of Hong Kong foreign exchange market be HKD = USD (1/7.7800)/(1/7.7500).

, new york foreign exchange market USD/GBP =0.6400/ 10.

London foreign exchange market GBP /HKD = 12.200/50

Exchange rate multiplication (using middle price): [(1/7.7800+1/7.7500)/2] * [(0.6400+0.6410)/2] * [(12.

100000 *1/7.7500 * 0.64 *12.200-100000 = 74838.75438+0 HKD.

2。 Forward exchange rate: GBP/HKD = (12.0000+0.0500)/(12.0100+600) =12.050012.0700. Sell GBP 1 ten thousand needs 1 ten thousand Hong Kong dollars * 12.05 at maturity. If the forward hedging is not estimated, the forward transaction can get GBP 1 ten thousand * 1 1.5000, thus avoiding it.