Hull Example 5.6
	Forward/Futures contracts on currencies
	"Home" currency			1.0	CHF
	Spot rate (foreign/home)			0.65	USD	per one unit of	CHF
	Spot rate (home/foreign)			1.54	CHF	per one unit of	USD
	Risk-free rate ("home")			3.00%	CHF
	Risk-free rate ("foreign")			8.00%	USD
	Time (T)			0.167	years
	No-arbitrate
	Scenario 1:	Invest at Home
	Scenario 2:	Invest in Foreign & "take a round trip"
	i.e., Convert at spot (home to foreign), invest @ foreign rate, convert back at forward rate (FF to GBP)
	Scenario #1	Invest in CHF
	Start:			End:
	1.00	CHF		1.01	CHF
	Scenario #2:	Round trip invest in USD
	Start:			End:
	0.65	USD		0.66	USD
				0.655	Convert forward
				1.01	CHF
	Direct use of Cost of Carry:			0.6554
	Two scenarios illustrate arbitrage if forward is mis-priced
	What if forward is mis-priced @			0.660	USD
	Borrow			1,000	USD
	Convert			1,538	CHF
	Invest			3.00%	CHF
	Grows to:			1,546	CHF
	Convert with forward			1,020	USD
	Payoff Loan			1,013	USD
	Riskless profit			7	USD
	What if forward is mis-priced @			0.660	USD
	Borrow			1,000	CHF
	Covert			650	USD
	Invest			8.00%	USD
	Grows to:			659	USD
	Loan Due			1,005	CHF
	Loan Due (convert with forward)			663	USD
	Riskless profit			(5)	USD

	Hull Example 5.6
	Forward/Futures contracts on currencies
	"Home" currency			1.0	USD
	Spot rate (foreign/home)			0.8426	AUD	per one unit of	USD
	Spot rate (home/foreign)			1.1868	USD	per one unit of	AUD
	Risk-free rate ("home")			8.00%	USD
	Risk-free rate ("foreign")			3.00%	AUD
	Time (T)			0.167	years
	No-arbitrate
	Scenario 1:	Invest at Home
	Scenario 2:	Invest in Foreign & "take a round trip"
	i.e., Convert at spot (home to foreign), invest @ foreign rate, convert back at forward rate (FF to GBP)
	Scenario #1	Invest in USD
	Start:			End:
	1.00	USD		1.01	USD
	Scenario #2:	Round trip invest in AUD
	Start:			End:
	0.84	AUD		0.85	AUD
				0.836	Convert forward
				1.01	USD
	Direct use of Cost of Carry:			0.8356
	Two scenarios illustrate arbitrage if forward is mis-priced
	What if forward is mis-priced @			0.660	AUD
	Borrow			1,000	AUD
	Convert			1,187	USD
	Invest			8.00%	USD
	Grows to:			1,203	USD
	Convert with forward			794	AUD
	Payoff Loan			1,005	AUD
	Riskless profit			(211)	AUD
	What if forward is mis-priced @			0.660	AUD
	Borrow			1,000	USD
	Covert			843	AUD
	Invest			3.00%	AUD
	Grows to:			847	USD
	Loan Due			1,013	USD
	Loan Due (convert with forward)			669	AUD
	Riskless profit			178	AUD

	Hull Example 5.6
	Forward/Futures contracts on currencies
	"Home" currency			1.0	AUD
	Spot rate (foreign/home)			1.187	USD	per one unit of	AUD
	Spot rate (home/foreign)			0.8426	AUD	per one unit of	USD
	Risk-free rate ("home")			3.00%	AUD
	Risk-free rate ("foreign")			8.00%	USD
	Time (T)			0.167	years
	No-arbitrate
	Scenario 1:	Invest at Home
	Scenario 2:	Invest in Foreign & "take a round trip"
	i.e., Convert at spot (home to foreign), invest @ foreign rate, convert back at forward rate (FF to GBP)
	Scenario #1	Invest in AUD
	Start:			End:
	1.00	AUD		1.01	AUD
	Scenario #2:	Round trip invest in USD
	Start:			End:
	1.19	USD		1.20	USD
				1.197	Convert forward
				1.01	AUD
	Direct use of Cost of Carry:			1.1967
	Two scenarios illustrate arbitrage if forward is mis-priced
	What if forward is mis-priced @			0.660	USD
	Borrow			1,000	USD
	Convert			843	AUD
	Invest			3.00%	AUD
	Grows to:			847	AUD
	Convert with forward			559	USD
	Payoff Loan			1,013	USD
	Riskless profit			(455)	USD
	What if forward is mis-priced @			0.660	USD
	Borrow			1,000	AUD
	Covert			1,187	USD
	Invest			8.00%	USD
	Grows to:			1,203	USD
	Loan Due			1,005	AUD
	Loan Due (convert with forward)			663	USD
	Riskless profit			539	USD