Question
Given the following rates, what arbitrage profit may be made with respect to the Australian dollar? USD 1 = AUD 1.70 USD 1 = SGD
Given the following rates, what arbitrage profit may be made with respect to the Australian dollar?
USD 1 = AUD 1.70
USD 1 = SGD 1.70
AUD 1 = SGD 0.96
A. 0.1753 cents
B. 0.5882 cents
C. 1.7526 cents
D. 5.882 cents
The Indonesian economy is predicted to average 64% per annum inflation over the next two years. If the forecast inflation for Australia over the same period is 2.5% per annum, how much will a rupiah cost you in two years' time if the current exchange rate is $0.1293/rupiah, and PPP is maintained?
A: $0.0505
B: $0.0808
C: $0.3310
D: $0.2069
***please show the full calculation
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started