Q12 - Reading 58 (Forwards)

Hey, Could someone explain to me the solution for Q12? I understand the calculation of the forward contract and the existence of an arbitrage opportunity. But how does this opportunity work. Thanks!

no takers?

I don’t have my book with me so its hard to answer your question. Do you want to post some of the details? No need for the exact question - just the important info.

this has been posted and solved in multiple ways before… Use the search function please.