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Consider the following bid-ask quotes in the spot market: SFr 1 Dkr .3818 - 25 USD 1 SFr .5780 - 86 USD 1 = DKr

Consider the following bid-ask quotes in the spot market: SFr 1 Dkr .3818 - 25 USD 1 SFr .5780 - 86 USD 1 = DKr .3021 - 33 (a) You have million USD. Can you take profitable advantage of these rates? Describe your strategy and compute the arbitrage profit. (You have million SFr. Can you take profitable advantage of these rates? Describe your strategy and compute the arbitrage profit.
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3. Consider the following bid-ask quotes in the spot market: SFr 1 = DKr 3.3818 - 25 USD 1 = SFr 1.5780 - 86 USD 1 = DKr 5.3021 - 33 (a) You have 1 million USD. Can you take profitable advantage of these rates? Describe your strategy and compute the arbitrage profit. (b) You have 1 million SFr. Can you take profitable advantage of these rates? Describe your strategy and compute the arbitrage profit

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