GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY 0.0059-0.0063 a. Are these quotes identical? b. If not, is there an opportunity for arbitrage? c. If there is an opportunity for arbitrage, how would one profit from it?
GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY 0.0059-0.0063 a. Are these quotes identical? b. If not, is there an opportunity for arbitrage? c. If there is an opportunity for arbitrage, how would one profit from it?
Chapter7: International Arbitrage And Interest Rate Parity
Section: Chapter Questions
Problem 2BIC
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Question
. GT Bank Ghana Limited quotes JPY/EUR 155-165, and GCB Bank quotes EUR/JPY
0.0059-0.0063
a. Are these quotes identical?
b. If not, is there an opportunity for arbitrage?
c. If there is an opportunity for arbitrage, how would one profit from it?
3. Given the bid-ask quotes for jpy/gbp 220-240, at what rate will:
(a) Mr. Agbo purchase gbp?
(b) Mr. Agbo sell gbp?
(c) Mr. Debrah purchase jpy?
(d) Mr. Kwaku sell jpy?
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