Cher has $10,000.  The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF).  She may either buy or sell at the stated rates: U.S. Bank:$2.13/SF         Bosnia Bank:$4.87/KM     Swiss Bank:SF2.38/KM    What is Cher’s arbitrage profit assuming a triangle arbitrage is possible? (Round answer to nearest whole number

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
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Cher has $10,000.  The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF).  She may either buy or sell at the stated rates:

  • U.S. Bank:$2.13/SF        
  • Bosnia Bank:$4.87/KM    
  • Swiss Bank:SF2.38/KM  

 What is Cher’s arbitrage profit assuming a triangle arbitrage is possible? (Round answer to nearest whole number.)

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