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In a free floating exchange rate regime, the demand and supply for a currency determine its price. Required: c) What arbitrage strategy can be used

In a free floating exchange rate regime, the demand and supply for a currency determine its price. Required:

c) What arbitrage strategy can be used if the following rates are observed in the market and what will be the risk free profit amount? Show all calculations. USD1 = AUD1.4640 USD1 = SGD1.4640 AUD1 = SGD 1.1410

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