Another dealer is quoting the ZAR/SEK cross-rate at 1.1210. The arbitrage profit that can be earned is

Question:

Another dealer is quoting the ZAR/SEK cross-rate at 1.1210. The arbitrage profit that can be earned is closest to:

A. ZAR3671 per million Swedish krona traded.

B. SEK4200 per million South African rand traded.

C. ZAR4200 per million Swedish krona traded.

A dealer provides spot rate quotes for the following currencies:

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2024 CFA Program Curriculum Level I Volume 1

ISBN: 9781953337672

1st Edition

Authors: CFA Institute

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Question Posted: Feb 01, 2024 08:02 AM

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Another dealer is quoting the ZAR/SEK cross-rate at 1.1210. The arbitrage profit that can be earned is

Question:

Currency CNY/HKD CNY/ZAR CNY/SEK Spot rate 0.8422 0.9149 1.0218

Step by Step Answer:

C is correct The ZARSEK crossrate from the original dealer is 1021809149 1116...View the full answer

2024 CFA Program Curriculum Level I Volume 1

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