Question
As discussed, we sometimes assume that bid and ask prices are the same for the sake of simplicity and easy calculation. However, in reality, we
As discussed, we sometimes assume that bid and ask prices are the same for the sake of simplicity and easy calculation. However, in reality, we have the deal with the difference between these two prices. Will an arbitrageur facing the following prices be able to make money?
| Borrowing | Lending | |
| $ | 5% | 4.5% |
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Pricing Analytics Models And Advanced Quantitative Techniques For Product Pricing
Authors: Walter R. Paczkowski
1st Edition
1138623938, 9781138623934
