Compute the profit from triangular profit if the bid and ask rate for pound and US$ ar 0.70pound/US$, 0.73pound/US$, and for US$ and euro are 0.9euro/US$ and 0.94euro/US$, and for pound and euro are 0.64pound/euro, and 0.68pound/euro. Comput the triangular arbitrage profit if the notional sum is $1,000. The steps to be followed ar buy euros, then buy pound and then buy US$. a. -$ 32.35 b. -$ 73.53 c. $ 72.19 d. $9.12
Compute the profit from triangular profit if the bid and ask rate for pound and US$ ar 0.70pound/US$, 0.73pound/US$, and for US$ and euro are 0.9euro/US$ and 0.94euro/US$, and for pound and euro are 0.64pound/euro, and 0.68pound/euro. Comput the triangular arbitrage profit if the notional sum is $1,000. The steps to be followed ar buy euros, then buy pound and then buy US$. a. -$ 32.35 b. -$ 73.53 c. $ 72.19 d. $9.12
Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)
14th Edition
ISBN:9781305506381
Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris
Chapter6: Managing In The Global Economy
Section: Chapter Questions
Problem 3E
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