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A corporate treasury needed a quote on USD/GBP and simultaneously calls BOA in New York City and Citi. The two banks give the following quotes
| A corporate treasury needed a quote on USD/GBP and simultaneously calls BOA in New York City and Citi. The two banks give the following quotes at the same time on the euro: |
| BOA CITI | ||||
| $2.7-$2.8/GBP $2.9-$3.0/GBP |
Using $1 million or its GBP equivalent, is it possible to make arbitrage profit with the two different exchange rate quotes.
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Cases in Financial Reporting
Authors: Michael J. Sandretto
1st edition
538476796, 978-0538476799
