Hello everyone, I found this to be a quick and easy way to calc coverage interest arb, please correct me if I made any mistakes. THIS WORKS IF THE BASE CURRENCY IS OVERVALUED, I HAVENT FOUND A PROBLEM WHERE ITS UNDERVALUED SO I DONT KNOW IF IT WORKS FOR THAT SCENARIO: first determine that the base is overvalued in the futures market (future price>justified IRP price). Then follow these steps: (assuming $1 dollar invested) 1.) Multiply spot rate given in example by counter currency interest rate (make sure to adjust if period is less than a year) 2.) Lend $1 of base currency at adjusted base currency interest rate 3.) sell step 2 at forward rate 4.) subtract step 3 from step 1 and multiply by whatever amount the question has asked you to invest and you should come up with the right answer