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1. Lindsay requests a quotation of GBP/EUR from Bank A and Bank B. Assume that she has GBP 8 million as authorized by Whidbey.
1. Lindsay requests a quotation of GBP/EUR from Bank A and Bank B. Assume that she has GBP 8 million as authorized by Whidbey. (a) Determine whether the quotations given are appropriate. Prove your answer. (b) If the quotations are not appropriate, can Lindsay make any profit from the locational arbitrage and WHY? Assume there is no commission/fees involved. Bank A(GBP/EUR) Bank B (EUR/GBP) Bid 0.8774 1.1392 Ask 0.8779 1.1400
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Applied Linear Algebra
Authors: Peter J. Olver, Cheri Shakiban
1st edition
131473824, 978-0131473829
