Question
At a particular time, exchange rates between the Australian Dollar, Euro, and U.S. Dollar quoted by three banks are as below: Bank A: $0.5880/A$ Bank
At a particular time, exchange rates between the Australian Dollar, Euro, and U.S. Dollar quoted by three banks are as below:
Bank A: $0.5880/A$
Bank B: 0.7143/A$
Bank C: $1.09/
If an Australian trader has A$1.5m available to invest, determine the percentage return for the trader if making a profit through a triangular arbitrage strategy is possible.
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Business Forecasting
Authors: John E. Hanke, Dean Wichern
9th edition
132301202, 978-0132301206
