Consider the spot rates between the Thai Baht (THB), the New Zealand (NZD), the Canadian Do CAD0.81834/NZD THB25.8750/CAD THB20.8199/NZD Which of the following is the closest to the riskless arbitrage that is possible at these rates? O a. 0.9833% O b. 1.7034% O c. 1.6749%

Consider the spot rates between the Thai Baht (THB), the New Zealand (NZD), the Canadian Do CAD0.81834/NZD THB25.8750/CAD THB20.8199/NZD Which of the following is the closest to the riskless arbitrage that is possible at these rates? O a. 0.9833% O b. 1.7034% O c. 1.6749%

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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Question

Consider the spot rates between the Thai Baht (THB), the New Zealand (NZD), the Canadian Dollar (CAD):
CADO.81834/NZD
THB25.8750/CAD
THB20.8199/NZD
Which of the following is the closest to the riskless arbitrage that is possible at these rates?
a. 0.9833%
b. 1.7034%
○ c.
1.6749%
○ d. None of the options in this question.

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