QUESTION 16 Given the folowing spot quotes : EURGBP 0.6850 GBPUSD 1.9920 EURUSD 1.2200 Notation "XYZABC n" means one needs n units of currency ABC to buy one unit of curre Do a triangular arbitrage starting with EUR 100,000,000. What is your profit in USD? 19,597,000 USD 14,452,000 USD 8,027,000 USD or arbitrago
QUESTION 16 Given the folowing spot quotes : EURGBP 0.6850 GBPUSD 1.9920 EURUSD 1.2200 Notation "XYZABC n" means one needs n units of currency ABC to buy one unit of curre Do a triangular arbitrage starting with EUR 100,000,000. What is your profit in USD? 19,597,000 USD 14,452,000 USD 8,027,000 USD or arbitrago
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 16
Given the folowing spot quotes :
EURGBP 0.6850
GBPUSD 1.9920
EURUSD 1.2200
Notation "XYZABC n" means one needs n units of currency ABC to buy one unit of currency XYZ.
Do a triangular arbitrage starting with EUR 100,000,000.
What is your profit in USD?
19,597,000 USD
14,452,000 USD
8,027,000 USD
There is no opportunity for arbitrage](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7858d89c-2f53-4700-9307-dd97274d2ae7%2F6fffd442-d337-45e5-9c3e-357f0ef4f142%2Fftkkbeq_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 16
Given the folowing spot quotes :
EURGBP 0.6850
GBPUSD 1.9920
EURUSD 1.2200
Notation "XYZABC n" means one needs n units of currency ABC to buy one unit of currency XYZ.
Do a triangular arbitrage starting with EUR 100,000,000.
What is your profit in USD?
19,597,000 USD
14,452,000 USD
8,027,000 USD
There is no opportunity for arbitrage
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