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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.
- Show the transactions you would need to take advantage of a triangular arbitrage opportunity.
- Determine the triangular arbitrage profit that is possible if you have $1,000,000.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
13th Edition
1260772381, 978-1260772388
