Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss franc/dollar = SF/1.6035/$ Aust

Business, Finance, Economics, Accounting, Operations Management, Computer Science, Electrical Engineering, Mechanical Engineering, Civil Engineering, Chemical Engineering, Algebra, Precalculus, Statistics and Probabilty, Advanced Math, Physics, Chemistry, Biology, Nursing, Psychology, Certifications, Tests, Prep, and more.
Post Reply
answerhappygod
Site Admin
Posts: 899603
Joined: Mon Aug 02, 2021 8:13 am

Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss franc/dollar = SF/1.6035/$ Aust

Post by answerhappygod »

Doug Bernard Specializes In Cross Rate Arbitrage He Notices The Following Quotes Swiss Franc Dollar Sf 1 6035 Aust 1
Doug Bernard Specializes In Cross Rate Arbitrage He Notices The Following Quotes Swiss Franc Dollar Sf 1 6035 Aust 1 (148.57 KiB) Viewed 49 times
Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss franc/dollar = SF/1.6035/$ Australian dollar/U.S. dollar = A$1.82871$ Australian dollar/Swiss franc = A$11488/SFr Ignoring transaction costs, does Doug Bernard have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how much would he profit if he has $1,000,000 available for this purpose? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Arbitrage profit
Join a community of subject matter experts. Register for FREE to view solutions, replies, and use search function. Request answer by replying!
Top
Post Reply

Return to “Archived Questions & Answers”