CIP arbitrage

USDINR quotes: spot 94.45/94.49. Six-month INR rates are 5.90% lend / 6.10% borrow, and USD rates 3.90% lend / 4.10% borrow (simple, $T=0.5$; assumptions). (a) Compute the no-arbitrage band $[L,U]$ for the six-month forward. (b) For each forward quote, 95.20/95.26, 95.30/95.36 and 95.70/95.76, say whether an arbitrage exists, give the round trip, and compute the profit per ₹100 crore. (c) Compute the mid-market CIP forward with mid rates 6.00% and 4.00% and mid spot 94.47.