A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New

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A corporate treasury working out of Vienna with operations in New York simultaneously calls Citibank in New York City and Barclays in London. The two banks give the following quotes at the same time on the euro:
Citibank NYC Barclays London
$0.7551-61/€ $0.7545-75/€
Using $1 million or its euro equivalent, show how the corporate treasury could make geographic arbitrage profit with the two different exchange rate quotes. Exchange Rate
The value of one currency for the purpose of conversion to another. Exchange Rate means on any day, for purposes of determining the Dollar Equivalent of any currency other than Dollars, the rate at which such currency may be exchanged into Dollars...
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Multinational Business Finance

ISBN: 978-0132743464

13th edition

Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett

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