Question
4.The following are New York closing rates for A$/US$ and$/: A$/$ = 1.4050 $/ = $1.2450 (a) Calculate the cross rate for in terms of
4.The following are New York closing rates for A$/US$ and$/:
A$/$ = 1.4050 $/ = $1.2450
(a) Calculate the cross rate for in terms of A$ (A$/).1.7492(b) If is trading at A$1.7450/ in London (cross market)on the same day, is there an arbitrage opportunity? If so,show how arbitrageurs with could profit from thisopportunity and calculate the arbitrage profits in and in percent.
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Public Finance A Contemporary Application Of Theory To Policy
Authors: David N Hyman
12th Edition
0357442156, 978-0357442159
