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Assume a forward contract is priced according to the principles of no-arbitrage in the usual...

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Assume a forward contract is priced according to the principles of no-arbitrage in the usual manner at a risk-free rate of r% per annum. A second forward contract is priced at a different internal rate of return of i% per annum and expires on the same date as the first contract. a) Discuss the theoretical opportunities for any arbitrage opportunities in terms of these two contracts. b) From a practical perspective, how would you operationalize any arbitrage opportunities that may exist in terms of the 2 forward contracts? Assume a forward contract is priced according to the principles of no-arbitrage in the usual manner at a risk-free rate of r% per annum. A second forward contract is priced at a different internal rate of return of i% per annum and expires on the same date as the first contract. a) Discuss the theoretical opportunities for any arbitrage opportunities in terms of these two contracts. b) From a practical perspective, how would you operationalize any arbitrage opportunities that may exist in terms of the 2 forward contracts

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