Assume £100 and can be exchanged Can$180 for £100. Also assume $1 can be exchanged for Can$1.1417 and £1 for $1.5649. How much arbitrage profit in pounds can be earned? Ignore transaction costs. Multiple Choice: £.75 £ 1.09 £ 2.02 £1.96 £.83
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1. Assume £100 and can be exchanged Can$180 for £100. Also assume $1 can be exchanged for Can$1.1417 and £1 for $1.5649. How much arbitrage profit in pounds can be earned? Ignore transaction costs.
Multiple Choice:
£.75
£ 1.09
£ 2.02
£1.96
£.83
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- Citibank quotes NZ$1 = US$ 0.6624. Deutsche Bank quotes € 1 = US$1.1758.BNZ Bank quotes€ 1 = NZ$1.7762.a. If these quotes are simultaneously observed spot rates, can you make an arbitrage profit? Ifso, calculate what profit would you make if you started with NZ$ 1 million. Assume thatthere are no transaction costs. b. What would be your arbitrage profit if you were to incur total transaction costs of 0.1% of theamount used for conversions?The following quotations are available to you. CAD 1.2610/USD, Euro 0.8309/USD, CAD 1.5/Euro Assume that you have an initial $1,000,000. Is triangular arbitrage possible? If so, explain the steps and compute your profit.Dealer 1 offers the following exchange rates: 1 USD = 1.195 CAD1 USD = 0.637 GBPDealer 2 offers the following exchange rates:1 CAD = 0.836 GBP What is the arbitrage profit on $10,903?
- Ali is specialized in Cross-rate arbitrage. He notices the below quotes: CHF1.5971 = 1USD; AUD1.8215 = 1USD; AUD1.1440 = 1CHF. By ignoring transaction cost. Does Ali have an arbitrage opportunity on these quotes?In case of any arbitrage opportunity, what steps has to be taken to achieved, if he has USD1,000,000 available for this purpose.Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99 units of Currency Y, and 1 unit of Currency Z costs 4.02 units of Currency X. By what percent is Currency Z miss-priced relative to Currency Y? If Z is overpriced, type a positive number and if Currency Z in underpriced, type a negative number. Go out four decimals. ( Hint to get you started: Take any one of those transaction rates and figure out what the third one should be)What is the break-even probability in the following case? A customer wishes to purchase a $2,000 item that has been marked up to 50% over cost. Assume all cash flows are discounted to present value and there is no chance of subsequent sales. a. 55.67% b. 77.67% c. 66.67% d. 88.67%
- Which option shows the presentation currency and denomination of the financial statements? a. USD in Millions b. USD in Whole Dollars c. USD in ThousandsYou can buy a euro for 38.40 THB. You can buy a dollar for €0.74. What is the value of USD per THB? For this question, input answer in 4 decimal places, else it may be considered incorrect.If EBIT=6,000; interest expense=500, t=30%, and Ks=10%, then the value of S is equal to: a) 60,000 b) 55,000 c) 38,500 d) 48,500
- Compute for the bank's income if a client will purchase USD375,000 @ P50.76 = $1 based on P50.30 benchmark or based rate. a. P172,500 b. P17,500 c. P1,725 d. P17,250A6) Finance In New York, you can exchange $1 for €0.8855 or £0.6781. Suppose that, in Berlin, £1 costs €1.2088. How much profit can you earn on $15,469 using triangle arbitrage? Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.Suppose a bank provides the following quotes: Bid 1.2567 CAD per U.S. Dollar and Ask 1.2682 CAD per U.S. Dollar Suppose you would like to buy Canadian Dollars and sell U.S. Dollars. Given the quotes above, what rate would you receive? Group of answer choices 0.0115 CAD per USD 2.5249 CAD per USD 1.2682 CAD per USD 1.2567 CAD per USD
