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Evaluate the arbitrage opportunity with the CIA methods for the PLNUSD with the following parameters and identify the preferred direction of trade Bid Ask S
Evaluate the arbitrage opportunity with the CIA methods for the PLNUSD with the following parameters and identify the preferred direction of trade
Bid | Ask | ||
S | PLNUSD | 0.2767 | 0.2771 |
F90 | PLNUSD | 0.2716 | 0.2723 |
rate | USD | 3.02% | 3.05% |
rate | PLN | 1.81% | 1.86% |
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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