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The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit

The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit

Essentials Of Investments
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
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The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit
Transcribed Image Text:The AUD/$ spot exchange rate is 1.60 and the SF/$ is 1.25. The AUD/SF cross exchange rate is: 0.7813 2.0000 1.2800 0.3500 The S$/$ spot exchange rate is 1.60, the CD/$ spot rate is 1.33 and the S$/CD 1.15. Determine the triangular arbitrage profit that is possible if you have $1,000,000. $44,063 profit $46,093 loss No profit is possible $46,093 profit
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