Question
Assuming no transaction costs, suppose the Singapore dollarU.S. dollar (S$/$) spot exchange rate is S$1.52/$, the Canadian dollarU.S. dollar (CD/$) spot rate is CD1.24/$ and
Assuming no transaction costs, suppose the Singapore dollarU.S. dollar (S$/$) spot exchange rate is S$1.52/$, the Canadian dollarU.S. dollar (CD/$) spot rate is CD1.24/$ and the Singapore dollarCanadian dollar (S$/CD) spot rate is S$1.18/CD
A)Show the transactions you would need to take advantage of a triangular arbitrage opportunity.
B)Determine the triangular arbitrage profit that is possible if you have $1,000,000.
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Real Estate Finance
Authors: John P. Wiedemer, Keith J. Baker
9th edition
324181426, 324181425, 978-0324181425
