Equinors Corporate Arbitrage. Equinor, the national oil company of Norway, is a large, sophisticated, and active participant

Question:

Equinor’s Corporate Arbitrage. Equinor, the national oil company of Norway, is a large, sophisticated, and active participant in both the currency and petrochemical markets. Although it is a Norwegian company, because it operates within the global oil market, it considers the U.S. dollar, rather than the Norwegian krone (Nok), as its functional currency. Ari Karlsen is a currency trader for Equinor and has immediate use of either $3 million or the Norwegian krone equivalent. He is faced with the following market rates and wonders whether he can make some arbitrage profits in the coming 90 days.

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