The Canadian dollar/U.S. dollar spot exchange rate is
C$1.68/US$, the Singapore dollar/U.S. dollar spot rate is
S$1.25/US$, and the Canadian dollar/Singapore dollar spot rate is
C$1.20/S$. If you have US$5,000, what is your triangular arbitrage
profit in US dollars?
The Japanese yen is currently trading at a forward discount
relative to the US dollar in the one-month forward market. An
investor believes that the best forecast for the spot exchange rate
one month from now is today’s spot exchange rate. Should this
investor buy or sell yens in the one-month forward market now?
The Canadian dollar/U.S. dollar spot exchange rate is C$1.68/US$, the Singapore dollar/U.S. dollar spot rate is S$1.25/U
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