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IHomer specializes in cross-rate arbitrage. He notices the following quotes: Credit Suisse S(/)=100 Barclays: S(/$)=0.80 Credit Lyonnais S(/$)=0.77 Answer these 2 questions (label with A.

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IHomer specializes in cross-rate arbitrage. He notices the following quotes: Credit Suisse S(/)=100 Barclays: S(/$)=0.80 Credit Lyonnais S(/$)=0.77 Answer these 2 questions (label with A. B) Algnoring transaction costs, does Homer have an arbitrage opportunity based on these quotes? B.If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how would he profit if he has $1,000,000 available for this purpose

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