Question
Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade Bid Ask S
Evaluate the arbitrage opportunity with the CIA methods for the EURUSD with the following parameters and identify the preferred direction of trade
Bid | Ask | ||
S | EURUSD | 1.1234 | 1.1241 |
F30 | EURUSD | 1.1328 | 1.1332 |
rate | USD | 3.32% | 3.38% |
rate | EUR | 2.12% | 2.16% |
Please calculate both directions and provide the answers. In your answer below, you could provide a 3x3 table (see the top right corner of the text box) and add the following:
Profit/Loss | Preferred direction (Y/N) | |
Home | answer | answer |
Foreign | answer | answer |
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