Assume you have $1,000 to invest in a triangular arbitrage transaction, what is your best course of action based on the following exchange rates? In New York, $1 = 4.5 CHF In Zurich, 1 CHF = 3 DKK In Copenhagen, $1 = 6 DKK $1 = 6 DKK so $1000 = 6000 DKK 2 DKK = 1 CHF means 6000 DKK = 2000 CHF 4.5 CHF = $1 means 2000 CHF = $444.44 $444.44 - $1000 = - $555.56 11) Assume you have $10,000 for an arbitrage transaction, what is your best course of action based on the following exchange rates? In New York, $1 = 1.8146 BZD In Belize, 1 ARS= 0.0285 BZD In Buenos Aires, $1 = 98.6749 ARS 8) Suppose that the return on a U.K. treasury bill is eight percent annum and the return on a U.S. treasury bill is eight percent annum and that you had $1,000,000 earmarked for short term investment for a period of a month. In which of the securities would you place your money? (Assume you are not a speculator). Show your calculations. 1 British pound (spot) $1.7748 British pound (30-day futures) $1.7776
- Assume you have $1,000 to invest in a triangular arbitrage transaction, what is your best course of action based on the following exchange rates?
In New York, $1 = 4.5 CHF
In Zurich, 1 CHF = 3 DKK
In Copenhagen, $1 = 6 DKK
$1 = 6 DKK so $1000 = 6000 DKK
2 DKK = 1 CHF means 6000 DKK = 2000 CHF
4.5 CHF = $1 means 2000 CHF = $444.44
$444.44 - $1000 = - $555.56
11) Assume you have $10,000 for an arbitrage transaction, what is your best course of action based on the following exchange rates?
In New York, $1 = 1.8146 BZD
In Belize, 1 ARS= 0.0285 BZD
In Buenos Aires, $1 = 98.6749 ARS
8) Suppose that the return on a U.K. treasury bill is eight percent annum and the return on a U.S. treasury bill is eight percent annum and that you had $1,000,000 earmarked for short term investment for a period of a month. In which of the securities would you place your money? (Assume you are not a speculator). Show your calculations.
1 British pound (spot) $1.7748
- British pound (30-day futures) $1.7776
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