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10. Minzu Bank has provided the following quotations for the U.S. dollar, the Japanese yen and the Thai baht: Quoted Bid Price Quoted Ask Price
10. Minzu Bank has provided the following quotations for the U.S. dollar, the Japanese yen and the Thai baht:
Quoted Bid Price | Quoted Ask Price | |
Value of Japanese Yen in US Dollars | $0.0085 | $0.0086 |
Value of Thai Baht in Japanese Yen | 2.69 | 2.70 |
Value of Thai Baht in US Dollars | $0.0224 | $0.0227 |
Determine whether the cross-exchange rate between the Thai baht and Japanese yen is appropriate. If it is not appropriate, determine the profit you could generate by withdrawing US$100,000 from your bank account and engaging in triangular arbitrage before the rates are adjusted.
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