You own $15,000. The dollar spot rate in Tokyo is 117.6464. The yen rate in New York

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You own $15,000. The dollar spot rate in Tokyo is 117.6464. The yen rate in New York is given in the preceding table. Are arbitrage profits possible? Set up an arbitrage scheme with your capital. What is the gain (loss) in dollars?

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Foundations Of Finance

ISBN: 9781292318738

10th Global Edition

Authors: Arthur Keown, John Martin, J. Petty

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Question Posted: Apr 17, 2024 01:00 AM

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You own $15,000. The dollar spot rate in Tokyo is 117.6464. The yen rate in New York

Question:

COUNTRY-CURRENCY CONTRACT $/FOREIGN CURRENCY Australia-dollar Spot 0.71023 30-day 0.71050 90-day 0.71140 Japan-yen Spot 0.895000 30-day 0.895850 90-day 0.900200 Mexico-peso Spot 0.052422 30-day 0.052360 90-day 0.051850

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Foundations Of Finance

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