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16. Given the following exchange rate in London and New York: Currencies pair Rate The Exchange EUR/USD 1.2000 London EUR/CAD 1.5400 London USD/CAD 1.2539
16. Given the following exchange rate in London and New York: Currencies pair Rate The Exchange EUR/USD 1.2000 London EUR/CAD 1.5400 London USD/CAD 1.2539 New York i. Determine any arbitrage opportunity. ii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment start with USD500,000. iii. Calculate the profit/ (loss) from the above triangular arbitrage should your investment start with EUR300,000. 17. Given the following exchange rate in Singapore and Malaysia: SGD/MYR = 3.0800 (Singapore) SGD/THB = 23.2400 (Singapore) MYR/THB = 7.5210 (Malaysia) i. Determine if there is any arbitrage opportunity. ii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment starts with MYR500,000. iii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment starts with SGD200,000.
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Cost management a strategic approach
Authors: Edward J. Blocher, David E. Stout, Gary Cokins
5th edition
73526940, 978-0073526942
