(a) Followings are the spot exchange rates quoted at three different forex markets: USD/INR 48.30 in Mumbai...

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(a) Followings are the spot exchange rates quoted at three different forex markets:

USD/INR 48.30 in Mumbai GBP/INR 77.52 in London GBP/USD 1.6231 in New York

Assuming that there are no transaction costs, explain whether there is any arbitrage gain possible from the quoted spot exchange rates.

Posted Date: May 13, 2024 07:27 AM

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(a) Followings are the spot exchange rates quoted at three different forex markets: USD/INR 48.30 in Mumbai...

Question:

Expert Answer:

Yes there is an arbitrage opportunity based on the given exchange rates Heres how to explain it Tria... View the full answer

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