how would you take advantage of the arbitrage opportunity if the 8-month forward prie of euro were 1.564

You need to balance a number of moving parts in order to take advantage of an arbitrage opportunity, which requires more than just trend prediction. You must be able to recognize and respond to the interactions between market demand, capacity, product availability, and a company's current commitments in order to make decisions about arbitrage trading.What is Arbitrage opportunity?Any time a stock, commodity, or piece of currency can be bought at one price on one market and simultaneously sold at a greater price on another, arbitrage can be used. The circumstance offers the trader the chance to benefit without taking any risks.Risk arbitrage is still available to the majority of retail traders notwithstanding the drawbacks of pure arbitrage. Although engaging in this kind of arbitrage involves some risk, it is typically referred to as "playing the odds." Here, we'll look at a few of the most popular types of arbitrage that are accessible to retail traders.In the US, arbitrage trading is not only permitted but also favored because it increases market efficiency. Arbitrageurs also perform a vital function by acting as middlemen and supplying liquidity on various markets.To learn more about Arbitrage opportunity refer to:https://brainly.com/question/15394730#SPJ4