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Consider the arbitrage opportunity problem that we discussed in class. The following table shows conversion rates among currencies. An arbitrage opportunity is a directed cycle
Consider the arbitrage opportunity problem that we discussed in class. The following table shows conversion rates among currencies. An arbitrage opportunity is a directed cycle such that the product of the exchange rates is greater than 1. Construct the network and the corresponding arc USD EUR GBP CHF CAD USD.741 0.657 1.061 1.005 EUR 1.349 1 0.888 1.433 1.366 GBP|l.521 1.126 1 1.614 1.538 CHF 0.942 0.698 0.619 1 0.953 CAD 0.995 0.732 0.650 1.0491 costs. For cach of the following cases, lind the cycle that has the best currency exchange rate and state the inal dollars you will get after completing the exchange cycl a) f you start with 10000 USD to do the exchange b) If you start with 10000 EUROS to do the exchange You can write a linear prograllining model and 1hen use excel//AMPL to lind Ihe op nal solution, or you can he Dijkstra's algorithm. Ater you choose a method, please state the steps clearly. Consider the arbitrage opportunity problem that we discussed in class. The following table shows conversion rates among currencies. An arbitrage opportunity is a directed cycle such that the product of the exchange rates is greater than 1. Construct the network and the corresponding arc USD EUR GBP CHF CAD USD.741 0.657 1.061 1.005 EUR 1.349 1 0.888 1.433 1.366 GBP|l.521 1.126 1 1.614 1.538 CHF 0.942 0.698 0.619 1 0.953 CAD 0.995 0.732 0.650 1.0491 costs. For cach of the following cases, lind the cycle that has the best currency exchange rate and state the inal dollars you will get after completing the exchange cycl a) f you start with 10000 USD to do the exchange b) If you start with 10000 EUROS to do the exchange You can write a linear prograllining model and 1hen use excel//AMPL to lind Ihe op nal solution, or you can he Dijkstra's algorithm. Ater you choose a method, please state the steps clearly
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