Question
2. For each of these exchange rates, determine if triangular arbitrage is possible. If so, how? a) 1 USD= .94 EUR, 1 USD= 1 CHF,
2. For each of these exchange rates, determine if triangular arbitrage is possible. If so, how?
a) 1 USD= .94 EUR, 1 USD= 1 CHF, 1 USD= 1.06 EUR
b) 1 BRL= 5 ARS, 1 BRL=200 CLP, 1 ARS=42 CLP
c) 1 AUD= 1.07 NZD, 1 AUD= 1.09 SGD, 1 NZD =1.02 SGD
3.) For each of these exchange rates & interest rates, determine if covered interest arbitrage is possible. If so, how?
a) Spot rate: 1 USD= .94 EUR, 1-yr fwd rate: 1 USD=.98 EUR, USD int rate= 2%, EUR int rate=6%
b) Spot rate: 1 BRL=5 ARS, 1-yr fwd rate: 1 BRL=5.25 ARS, BRL int rate= 5%, ARS int rate=8%
c) Spot rate: 1 AUD= 1.07 NZD, 1-yr fwd rate: 1 AUD=0.99 NZD, AUD int rate=5%, NZD int rate=0.5%
both of them please thanks
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