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INTERNATIONAL FINANCE Please give answers with proper calculations and explanations. thank you 1. Given the following exchange rate in Malaysia and Korea: Currencies pair Rate
INTERNATIONAL FINANCE
Please give answers with proper calculations and explanations. thank you
1. Given the following exchange rate in Malaysia and Korea:
Currencies pair | Rate | The Exchange |
GBP/MYR | 5.5800 | Malaysia |
KRW/MYR | 0.0035 | Malaysia |
GBP/KRW | 1,581.00 | Korea |
- Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment starts with KRW5,000,000. (15 marks)
- Conclude your answer above. (3 marks)
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