Question
Data given by american bank :$ = S($/) = 1.2000-1.2050; :$=S($/) = 1.7950-1.8000 data by british bank :=S(/) = 1.5050-1.5070 A) find out the home
Data given by american bank :$ = S($/) = 1.2000-1.2050; :$=S($/) = 1.7950-1.8000 data by british bank :=S(/) = 1.5050-1.5070 A) find out the home made cross rates for S(/) B) Are the market cross rates sustainable? If not, what can market do to eliminate market mispricing? Will there be any profit to arbitrageurs,is so how much?
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The Risk Modeling Evaluation Handbook Rethinking Financial Risk Management Methodologies In The Global Capital Markets
Authors: Greg Gregoriou, Christian Hoppe, Carsten Wehn
1st Edition
0071663703, 978-0071663700
