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Considering the following quotes from three banks: London Bank: 1 . 0 8 3 7 / Hong Kong Bank: U$ 1 . 1 9 4
Considering the following quotes from three banks:
London Bank:
Hong Kong Bank: U$
Tokyo Bank: U$
Ignoring transaction costs, is there an arbitrage opportunity based on these quotes? Justify your answer through calculations. If yes, what steps would you take to make an arbitrage profit and how much profit in US dollars would you make if you are authorized to use million US dollars for this purpose?
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