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I am wanting to know how to get the answers that I have circled please. The table below presents bid-ask quotes for Swiss Francs (SF)
I am wanting to know how to get the answers that I have circled please. The table below presents bid-ask quotes for Swiss Francs (SF) from several currency dealers around the world. Please answer the next 4 questions based on this information. London New York Zurich Hong Kong Currency Dealer in Bid/Ask Quotes for SFs0.7464-71s0.7469-76s0.7471-74s0.7460-70 order to take advantage of locational arbitrage, a currency speculator should buy SF from the dealer and sell SF to the dealer Zurich; Hong Kong b Hong Kong: Zurich New York; Hong Kong d.London;New York 2. The maximum profit a currency speculator, with access to $5,000,000, can make in one round trip locational arbitrage transaction is $ 162 b.500 669 2500 3. If all traders try to maximize profits, then the ask price of thedealer will_ London; increase rich; decrease New York; increase dHong Kong; increase 4. If all traders try to maximize profits, then the bid price of the dealer will London; increase urich; decrease New York; decrease d.Hong Kong: decrease
I am wanting to know how to get the answers that I have circled please.
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