You are a foreign exchange trader and you receive the following two quotes for spot trading:

Question:

• Bank A is willing to trade at $1.50 per Swiss franc.

• Bank B is willing to trade at 0.50 Swiss franc per dollar.

Is there an opportunity to make an arbitrage profit? If there is, explain what you will do. If there is not, why not?

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International Economics

ISBN: 9780078021770

16th Edition

Authors: Thomas Pugel

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Question Posted: Mar 23, 2024 10:00 AM

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You are a foreign exchange trader and you receive the following two quotes for spot trading:

Question:

Step by Step Answer:

Yes State both exchange rates in the same way and then buy low sell high Bank A is q...View the full answer

International Economics

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