Question
Bank A: Bid = SF0.8/S$ and Offer = SF0.9/S$. Bank B: Bid = S$0.7143/SF and Offer = S$0.8333/SF. If you are a Swiss arbitrager (have
Bank A: Bid = SF0.8/S$ and Offer = SF0.9/S$. Bank B: Bid = S$0.7143/SF and Offer = S$0.8333/SF. If you are a Swiss arbitrager (have SF), how can you do the arbitrage? Question options: A) Buy S$ at S$0.8333/SF and Sell S$ at $0.9/SF B) Buy S$ at SF0.9/S$ and Sell S$ at S$0.8333/SF C) Buy SF at S$0.8333/SF and Sell SF at SF0.8/S$ D) Buy SF at S$0.7143/SF and Sell SF at SF0.9/S$ E) Will not do the arbitrage Bank A: Bid = Bht30/DK and Offer = Bht36/DK. Bank B: Bid = DK0.02/Bht and Offer = DK0.025/Bht. If you are a Danish arbitrager (have DK), how can you do the arbitrage? Question options: A) Buy DK at Bht30/DK and Sell DK at DK0.025/Bht B) Buy Bht at DK0.025/Bht and Sell Bht at Bht36/DK C) Buy DK at DK0.02/Bht and Sell DK at Bht30/DK D) Will not do the arbitrage E) Buy Bht at Bht36/DK and Sell Bht at DK0.025/Bht Bank A: Bid = Peso0.2745/Yen and Offer = Peso0.2975/Yen. Bank B: Bid = Yen3.2520/Peso and Offer = Yen3.5149/Peso. If you are a Mexican arbitrager (have Peso), how can you do the arbitrage? Question options: A) Buy Peso at Peso0.2745/Yen and Sell Peso at Yen3.5149/Peso B) Buy Yen at Peso0.2975/Yen and Sell Yen at Yen3.2520/Peso C) Buy Peso at Yen3.2520/Peso and Sell Peso at Peso0.2745/Yen D) Buy Yen at Yen3.5149/Peso and Sell Yen at Peso0.2975/Yen E) Will not do the arbitrage
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