Question
Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: USD/CHF = 0.9019 AUD/USD = 0.7631 and AUD/CHF = 0.6857 He has $1,000,000 to
Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes: USD/CHF = 0.9019 AUD/USD = 0.7631 and AUD/CHF = 0.6857 He has $1,000,000 to do arbitrage. He believes the USD/CHF is out of sync. He believes that he can make money selling USD (buying francs) Ignoring transaction costs, how much would Doug Bernard make or lose if he follows his belief. (answer in USD, no cents)
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Fundamentals Of Healthcare Finance
Authors: Paula H. Song, Kristin L. Reiter
4th Edition
1640553223, 978-1640553224
