Question
Cher has $10,000. The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF). She may either buy
Cher has $10,000. The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF). She may either buy or sell at the stated rates:
- U.S. Bank:$2.4/SF
- Bosnia Bank:$3.31/KM
- Swiss Bank:SF2.21/KM
What is Chers arbitrage profit assuming a triangle arbitrage is possible? (Round answer to nearest whole number.)
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Cornett
6th Edition
0077211332, 9780077211332
