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A dealer in U.K quotes $1.5747/ while a dealer in Paris quotes 0.8674/. a. What should be the direct quote for the dollar in Paris?
A dealer in U.K quotes $1.5747/ while a dealer in Paris quotes 0.8674/. a. What should be the direct quote for the dollar in Paris? b. Another dealer in Frankfurt quotes $1.3255/. Is there an opportunity to arbitrage for an American investor? If so, what is the profit? Use $100,000 as the notional amount and ignore transaction costs
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