Quotation Bid-ask rates offered by three banks Bid Ask Bank A (GBP/USD)1,6 1,62 Bank B (MYRUSD)0.2 0.02 Bank C (GBP/MYR) 8.2 8.1 Is the triangle arbitrage visible? if you invest $100,000 what will be your profit ?Can the investors' starts from MYR? Justify

International Financial Management
14th Edition
ISBN:9780357130698
Author:Madura
Publisher:Madura
Chapter20: Short-term Financing
Section: Chapter Questions
Problem 1IEE
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Quotation Bid-ask rates offered by three banks Bid Ask Bank A (GBP/USD)1,6 1,62 Bank B (MYRUSD)0.2 0.02 Bank C
(GBP/MYR) 8.2 8.1 Is the triangle arbitrage visible? if you invest $100,000 what will be your profit ?Can the investors' starts
from MYR? Justify
Transcribed Image Text:Quotation Bid-ask rates offered by three banks Bid Ask Bank A (GBP/USD)1,6 1,62 Bank B (MYRUSD)0.2 0.02 Bank C (GBP/MYR) 8.2 8.1 Is the triangle arbitrage visible? if you invest $100,000 what will be your profit ?Can the investors' starts from MYR? Justify
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