An investor is examining exchange rates in London and New York. For simplicity, all rates are quoted versus the U.S. dol
Posted: Sun Jul 03, 2022 6:43 am
An investor is examining exchange rates in London and New York.For simplicity, all rates are quoted versus the U.S. dollar. In NewYork: the British pound rate is $1.35, the euro rate is $0.98, theCanadian dollar rate is 1.34 Canadian dollar, and the Yen rate is117 Yen.
In London: the British pound rate is $1.38, the euro rate is$0.95, the Canadian dollar rate is 1.31 Canadian dollar, and theYen rate is 115 Yen.
Which currency provides the better arbitrage and by how much foran investor with a $1000?
Euro by $31.58
Pound by $9.36
Euro by $9.36
Pound by $31.58
An investor is examining exchange rates in London and New York.For simplicity, all rates are quoted versus the U.S. dollar. In NewYork: the British pound rate is $1.35, the euro rate is $0.98, theCanadian dollar rate is 1.34 Canadian dollar, and the Yen rate is117 Yen.
In London: the British pound rate is $1.38, the euro rate is$0.95, the Canadian dollar rate is 1.31 Canadian dollar, and theYen rate is 115 Yen.
Which of the following is true?
the $1.38 rate is direct for the pound and direct for thedollar
the $1.38 rate is direct for the pound and indirect for thedollar
the $1.38 rate is indirect for the pound and direct for thedollar
the $1.38 rate is indirect for the pound and indirect for thedollar
In London: the British pound rate is $1.38, the euro rate is$0.95, the Canadian dollar rate is 1.31 Canadian dollar, and theYen rate is 115 Yen.
Which currency provides the better arbitrage and by how much foran investor with a $1000?
Euro by $31.58
Pound by $9.36
Euro by $9.36
Pound by $31.58
An investor is examining exchange rates in London and New York.For simplicity, all rates are quoted versus the U.S. dollar. In NewYork: the British pound rate is $1.35, the euro rate is $0.98, theCanadian dollar rate is 1.34 Canadian dollar, and the Yen rate is117 Yen.
In London: the British pound rate is $1.38, the euro rate is$0.95, the Canadian dollar rate is 1.31 Canadian dollar, and theYen rate is 115 Yen.
Which of the following is true?
the $1.38 rate is direct for the pound and direct for thedollar
the $1.38 rate is direct for the pound and indirect for thedollar
the $1.38 rate is indirect for the pound and direct for thedollar
the $1.38 rate is indirect for the pound and indirect for thedollar