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Given the foreign exchange quotes below, calculate the Banks Bid and Ask quotes for the 3-month #AUD/1euro forward exchange rate if triangular arbitrage has eliminated
Given the foreign exchange quotes below, calculate the Banks Bid and Ask quotes for the 3-month #AUD/1euro forward exchange rate if triangular arbitrage has eliminated profit opportunities? Be sure to show your work.
Spot & Forward | Banks Bid | Banks Ask |
Spot #AUD/1$ | AUD 1.5010/$ | AUD 1.5015/$ |
3-month #AUD/1$ forward | AUD 1.5030/$ | AUD 1.5040/$ |
Spot #$/1euro | $1.1430/euro | $1.1438/euro |
3-month #$/1euro forward | $1.1492/euro | $1.1500/euro |
Spot #AUD/1euro | AUD 1.7153/euro | AUD 1.7171/euro |
Forward (#AUD/euro) | ? | ? |
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