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Intro You have $44,000 and observe the following exchange rates: Bid Ask $1.04 Exchange rate Value of euro in U.S. dollars Value of Swiss franc

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Intro You have $44,000 and observe the following exchange rates: Bid Ask $1.04 Exchange rate Value of euro in U.S. dollars Value of Swiss franc in U.S. dollars Value of euro in Swiss francs $1.03 $0.98 CHF1 $0.99 CHF1.01 Part 1 Attempt 1/6 for 10 pts. What is the no-arbitrage value of the euro in Swiss francs (the cross exchange rate)? 2+ decimals Submit Part 2 Attempt 1/5 for 10 pts. Is there an arbitrage opportunity? If so, what should you do to exploit it? Yes: buy euros with Swiss francs Yes: buy Swiss francs with euros No Part 3 | Attempt 1/6 for 10 pts. How many Swiss francs do you get from converting your dollars? 0+ decimals Submit Part 4 Attempt 1/6 for 10 pts. How many euros do you get from converting your Swiss francs? 0+ decimals Submit Attempt 1/6 for 10 pts. Part 5 How many dollars do you get from converting your euros? 0+ decimals Submit Part 6 Attempt 1/6 for 10 pts. What is your profit from exploiting the opportunity once in $)? 0+ decimals Submit

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