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help please Spot Exchange Rates 5. Suppose the SF is quoted at 0.4442 - 86 in London and the pound sterling is quoted at 2.2523

help please Spot Exchange Rates image text in transcribed
5. Suppose the SF is quoted at 0.4442 - 86 in London and the pound sterling is quoted at 2.2523 - 42 in Bern. a. Is there a profitable arbitrage situation? Describe it. b. Compute the percentage bid-ask spreads on the pound and SF. 6. Assuming no transaction costs. Suppose 1 = $1.9411 in New York, $1 = 0.8756 in Paris and 1 = 0.6588 in London. How could you take profitable advantage of these rates

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