Question
1. Assume no transaction cost. Quotes at locations A, B and C are as follows: A: /U$ = 106.50, B: C$/U$ = 1.3215 , C:
1. Assume no transaction cost. Quotes at locations A, B and C are as follows: A: /U$
= 106.50, B: C$/U$ = 1.3215 , C: /C$ = 82.905
Determine if triangular arbitrage is feasible.
State what you would do to profit from arbitrage.
Calculate the percentage profit.
Can you help? I don't understand this
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Financial Modeling
Authors: Simon Benninga
2nd Edition
0262024829, 9780262024822
