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Assuming the following quotes: New York $/gbp London eur/gbp Frankfurt $/eur Bid 1.2575 1.1925 1.1315 Ask 1.2715 1.2115 1.1425 Your currency is the gbp. Calculate

Assuming the following quotes:
New York $/gbp
London eur/gbp
Frankfurt $/eur
Bid
1.2575
1.1925
1.1315
Ask
1.2715
1.2115
1.1425
Your currency is the gbp. Calculate cross rate and if there are arbitrage possibilities. If so, Explain what to do with 1 million gbp.
image text in transcribed
3. Assuming the following quotes: Bid Ask $/gbp 1.2575 1.2715 New York London eur/gbp 1.1925 1.2115 Frankfurt $/eur 1.1315) 1.1425 Your currency is the gbp. Calculate cross rate and if there are arbitrage possibilities. If so, Explain what to do with 1 million gbp. 25 34

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