3. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals (SAR). He has USD 1,000,000 to work with so he gathers the following quotes. Is there an opportunity for an arbitrage profit? Citibank quotes U.S. dollar per Libyan dinar $1.9324 = LYD 1.00 National Bank of Kuwait quotes Saudi riyal SAR 1.9405 = LYD 1.00 per Libyan dinar Barclay quotes U.S. dollar per Saudi riyal $0.2667 = SAR 1.00
3. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals (SAR). He has USD 1,000,000 to work with so he gathers the following quotes. Is there an opportunity for an arbitrage profit? Citibank quotes U.S. dollar per Libyan dinar $1.9324 = LYD 1.00 National Bank of Kuwait quotes Saudi riyal SAR 1.9405 = LYD 1.00 per Libyan dinar Barclay quotes U.S. dollar per Saudi riyal $0.2667 = SAR 1.00
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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Global Finance
![3. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders
if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals
(SAR). He has USD 1,000,000 to work with so he gathers the following quotes. Is there an
opportunity for an arbitrage profit?
Citibank quotes U.S. dollar per Libyan dinar $1.9324 = LYD 1.00
National Bank of Kuwait quotes Saudi riyal SAR 1.9405 = LYD 1.00
per Libyan dinar
Barclay quotes U.S. dollar per Saudi riyal
$0.2667 = SAR 1.00](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fa1166721-85e5-491b-8f82-a2c3222b8c7a%2Fda8dc3f1-61aa-41c3-9c76-aab78df09200%2Fx41n6xs_processed.jpeg&w=3840&q=75)
Transcribed Image Text:3. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders
if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals
(SAR). He has USD 1,000,000 to work with so he gathers the following quotes. Is there an
opportunity for an arbitrage profit?
Citibank quotes U.S. dollar per Libyan dinar $1.9324 = LYD 1.00
National Bank of Kuwait quotes Saudi riyal SAR 1.9405 = LYD 1.00
per Libyan dinar
Barclay quotes U.S. dollar per Saudi riyal
$0.2667 = SAR 1.00
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