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Let the spot rate between France and US be 0.594 EUR/USD and the exchange rate between Australia and US is 1.0843 AUD/USD. If the market
Let the spot rate between France and US be 0.594 EUR/USD and the exchange rate between Australia and US is 1.0843 AUD/USD. If the market quoted AUD/EUR exchange rate is 1.4152 AUD/EUR, instead of 1.5572 AUD/EUR. Using this information, show what transactions you would make to earn an arbitrage profit if you have 10 EUR in hand.
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