Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currenciesGBP 0.739541 / USDAUD 1.3081 / USDGBP 0.563789 / AUDNow he wants to use USD 1000000 and make a profit.Answer the following questions based on the data given above. After converting from USD to GBP and from GBP to AUD, How much will he get in converting AUD to USD in the above process?a.1715879b.1002777.804c.739541d.All the options are wrong e.1311733.645 After converting from USD to GBP, How much will he get in converting GBP to AUD?a.739541b.1002777.804c.416945d.Nonee.1311733.645 How much will he get in converting USD 1000000 to GBP?a.1311733.645b.1002777.804c.Noned.739541e.1352190 Which cross rate should he calculate and compare with actual quotes to make sure that he will get profita.GBP/AUDb.USD/AUDc.AUD/USDd.GBP/USDe.None

Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies GBP 0.739541 / USD AUD 1.3081 / USD GBP 0.563789 / AUD Now he wants to use USD 1000000 and make a profit. Answer the following questions based on the data given above.

Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies GBP 0.739541 / USD AUD 1.3081 / USD GBP 0.563789 / AUD Now he wants to use USD 1000000 and make a profit. Answer the following questions based on the data given above.

ECON MICRO

5th Edition

ISBN:9781337000536

Author:William A. McEachern

Publisher:William A. McEachern

Chapter13: Capital, Interest, Entrepreneurship, And Corporate Finance

Section: Chapter Questions

Problem 4.8P

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Question

Mr.Abdullah specializes on Arbitrage trading. He has got the following quotes regarding 3 currencies

GBP 0.739541 / USD

AUD 1.3081 / USD

GBP 0.563789 / AUD

Now he wants to use USD 1000000 and make a profit.

Answer the following questions based on the data given above.

After converting from USD to GBP and from GBP to AUD, How much will he get in converting AUD to USD in the above process?

1715879

1002777.804

739541

All the options are wrong

1311733.645

After converting from USD to GBP, How much will he get in converting GBP to AUD?

739541

1002777.804

416945

None

1311733.645

How much will he get in converting USD 1000000 to GBP?

1311733.645

1002777.804

None

739541

1352190

Which cross rate should he calculate and compare with actual quotes to make sure that he will get profit

GBP/AUD

USD/AUD

AUD/USD

GBP/USD

None

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