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Evaluate the arbitrage opportunity with the triangular arbitrage methods for the following currency pairs and identify the preferred direction of trade Bid Ask CHFUSD 1.1625
Evaluate the arbitrage opportunity with the triangular arbitrage methods for the following currency pairs and identify the preferred direction of trade
Bid | Ask | |
CHFUSD | 1.1625 | 1.1631 |
USDGBP | 0.6325 | 0.6333 |
CHFGBP | 0.7045 | 0.7076 |
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:
Calculation | Preferred direction (Y/N) | |
Direction 1 | answer | answer |
Direction 2 | answer | answer |
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