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Compute the profit from triangular profit if the bid and ask rate for pound and US$ are 0.70pound/US$, 0.73pound/US$, and for US$ and euro are
Compute the profit from triangular profit if the bid and ask rate for pound and US$ are 0.70pound/US$, 0.73pound/US$, and for US$ and euro are 0.9euro/US$ and 0.94euro/US$, and for pound and euro are 0.64pound/euro, and 0.68pound/euro. Compute the triangular arbitrage profit if the notional sum is $1,000. The steps to be followed are buy euros, then buy pound and then buy US$. a. -$ 32.35 b. $ 73.53 c. $72.19 d. $ 9.12 Mr. Aley bought 320 shares of Apple at $40 per share; he bought the stock at initial margin of 62%. The stock is now trading at $58.52 per share, and the federal reserve has recently lowered initial margin requirement to 51%. Aley now wants to do a little pyramiding and buy another 320 shares of stock. What is the minimum amount of equity that he will have to put up in this transaction? a. $6,588.96 b. $5,238.53 c. $4,796.27 d. $7,156.52
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