This is an exam question that I cannot answer using my textbook so I came to this site for help:
Assume that I can buy a 2, 2 forward rate of 11% at the stock market, that is in two years I can deposit my money for two years at a 11% interest rate.
Assuming further that my local bank offered me to deposit my money in two years for two years at 12% interest rate, so basically the same thing but I cannot "trade" this offer to other people because it is a personal offer to me.
Assuming further that I can borrow and lend money at some interest rate, let's say 8% or something.
Question: Is there any way that an investor could gain from those different interest rates for the forward? Any answers are highly appreciated! Thanks a lot in advance.