Question
Given the following three currency quotes given by a Swiss bank and a London bank: SF0.9398/$ SF1.2594/ 0.7645/$ if theres any chance for arbitrage ,Starting
Given the following three currency quotes given by a Swiss bank and a London bank:
SF0.9398/$
SF1.2594/
0.7645/$
if theres any chance for arbitrage ,Starting with a nominal $26 million, show how much arbitrage profit you can make by trading the currencies at the given rates
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Continuous Time Finance
Authors: Robert C. Merton
1st Edition
0631185089, 978-0631185086
