(One price principle with transaction costs) Continuing with the previous problem: If the transaction costs in London...

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(One price principle with transaction costs) Continuing with the previous problem: If the transaction costs in London are 0.25% per transaction and 0.5% in Asheville, is the strategy still profitable? What is the maximum transaction costs (assuming that they are twice as much in Ashville than in London) that will make the strategy breakeven?

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Principles Of Finance Wtih Excel

ISBN: 9780190296384

3rd Edition

Authors: Simon Benninga, Tal Mofkadi

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