Compute the profit from triangular profit ir the bid and ask rate for pound and US$ are 0.70 pound/US$, 0.73 pound/US$ and US$ and Euro are 0.9 Euro/US$ and 0.94 Euro/US$ and for pound and Euro are 0.64 pound/Euro and 0.68 pound/Euro. Compute the triangular Arbitrage profit if the motional sum is $1000. The steps to be followed by euros, then buy pound and then buy US$. A. -$32.35 B. -$73.53 C. $72.19 D. $9.12
Compute the profit from triangular profit ir the bid and ask rate for pound and US$ are 0.70 pound/US$, 0.73 pound/US$ and US$ and Euro are 0.9 Euro/US$ and 0.94 Euro/US$ and for pound and Euro are 0.64 pound/Euro and 0.68 pound/Euro. Compute the triangular Arbitrage profit if the motional sum is $1000. The steps to be followed by euros, then buy pound and then buy US$. A. -$32.35 B. -$73.53 C. $72.19 D. $9.12
Chapter9: Forecasting Exchange Rates
Section: Chapter Questions
Problem 1BIC
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Compute the profit from triangular profit ir the bid and ask rate for pound and US$ are 0.70 pound/US$, 0.73 pound/US$ and US$ and Euro are 0.9 Euro/US$ and 0.94 Euro/US$ and for pound and Euro are 0.64 pound/Euro and 0.68 pound/Euro. Compute the triangular Arbitrage profit if the motional sum is $1000. The steps to be followed by euros, then buy pound and then buy US$.
A. -$32.35 B. -$73.53 C. $72.19 D. $9.12
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