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LLLLLL 1.3135 QUESTION 10 Inspired by her recent trip to the Great Pyramids, Citibank trader Rumer Willis wonders if she can make an intamana arbitrage
LLLLLL 1.3135 QUESTION 10 Inspired by her recent trip to the Great Pyramids, Citibank trader Rumer Willis wonders if she can make an intamana arbitrage profit using Libyan dinars and Saudi riyals. She has 51.000.000 to work with so she gathers the following contes (She can buy or sell at the stated rates.) Citibank quotes U.S. dollar per Libyan dinan 51.932M/LYD National Bank of Kuwait quotes Saudi riyal per Libyan dinar: SAR 1905 YD 50.26667/SAR Barclay quotes U.S. dollar per Saudirlyal Based on triangular arbitrage, what is the amount of profit Rumer Willis will make in dollars QUESTION 11 Akemi Yamada a foreien thanee trader at Credit Suisse Tokyais exploring covered interest bare Based on triangulac arbiterse what is the amount of profit Rune Willis will make in dollars? QUESTION 11 Alami Yamada a foreign exchange trader at Credit Suisse (Tokyo), is exploring covered interest arbitrage (CIA) possibilities She wants to invest 5900,000 or its yen equivalent in a covered interest arbitrage between US dollars and Japanese yen She faced the following exchange rate and interest rate quotes. Assumptions Value Arbitrage funds available $900.00 Spot rate/5) 105.46 980-day forward rate (85) 104.75 180-day S dollar interest rate 180 day japanese yen interest rate What is the SIA profit potential to 4.decimal placr] - the difference in interest rates and the forward discount rate? Som Submit and the
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