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Calculate the potenntial arbitrage USD proft, if any from an inital postion of $1 million. This is an example of how banks in real life
Calculate the potenntial arbitrage USD proft, if any from an inital postion of $1 million.
This is an example of how banks in real life can make thousands of dollar profits over few seconds. Given the following bid/ask quotes on different foreign exchange markets, please calculate the potential arbitrage USD profit, if any, from an initial position of $1 million. This is called "triangular arbitrage opportunity". In Switzerland: CHF/USD = 1.2500 - 1.2510 In United States: USD/GBP = 1.8000-1.8010 In Great Britain: CHF/GBP = 2.3000-2.3010Step by Step Solution
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