The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit
The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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![The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange
rate is:
0.7813
2.0000
1.2800
0.3500
The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15.
Determine the triangular arbitrage profit that is possible if you have $1,000,000.
$44,063 profit
$46,093 loss
No profit is possible
$46,093 profit](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febbe5ba8-1b10-46c6-940e-8aca1a11f8dd%2Fa2bc2768-d3e2-4590-8291-b47dcc0ef5a7%2F4xqgozj_processed.jpeg&w=3840&q=75)
Transcribed Image Text:The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange
rate is:
0.7813
2.0000
1.2800
0.3500
The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15.
Determine the triangular arbitrage profit that is possible if you have $1,000,000.
$44,063 profit
$46,093 loss
No profit is possible
$46,093 profit
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