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Doug Bernard specializes in cross - rate arbitrage. He notices the following quotes: Swiss franc / dollar = SFr 1 . 6 0 8 7
Doug Bernard specializes in crossrate arbitrage. He notices the following quotes:
Swiss francdollar SFr$
Australian dollarUS dollar A$$
Australian dollarSwiss franc A$SFr
Ignoring transaction costs, does Doug Bernard have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how much would he profit if he has $ available for this purpose? Do not round intermediate calculations. Round your answer to decimal places.
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