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Calculation Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss Franc/dollar = SFr1.4971/$ Australian dollar/dollar = A$1.8215/$ . . Australian dollar/Swiss franc

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Calculation Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: Swiss Franc/dollar = SFr1.4971/$ Australian dollar/dollar = A$1.8215/$ . . Australian dollar/Swiss franc = A$1.1440/SFr Does Doug have an arbitrage opportunity based on these quotes? Explain how to conduct the arbitrage. Calculate the rate of return. (5 points) (Chapter 5)

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