Given the following quotations at two banks: $US Bank A Bank B Bid rate for $HK 0.1285
Question:
Given the following quotations at two banks:
$US | ||
Bank A | Bank B | |
Bid rate for $HK | 0.1285 | 0.1279 |
Ask rate for $HK | 0.1292 | 0.1284 |
Is there an arbitrage opportunity? If so, how much profit could you make starting with $US1M?
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Related Book For
Exchange Rates and International Finance
ISBN: 978-0273786047
6th edition
Authors: Laurence Copeland
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