Currency Futures : Arbitrage

Sanjay Sachdev

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Hey guys,

I hv a doubt in currency futures Arbitrage…say, for instance: no-arbitrage price is $1.4409/pound, Sopt price is $1.4390/pound & the future price is $1.4650...now here to have Arbitrage we sell at high & buy at low…i.e(sell futures and buy spot) now my doubt here is : why we’re discounting the per unit of currency to adjust wid spot price ? when there’s spot price already availabe in the market i.e $1.4390/pound.
 
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