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Maria specializes in cross-rate arbitrage. She notices the following quotes: Swiss franc/dollar = SFr1.5971/$ Australian dollar/U.S. dollar = A$1.8215/$ Australian dollar/Swiss franc = A$1.1300/SFr Ignoring
Maria specializes in cross-rate arbitrage. She notices the following quotes: Swiss franc/dollar = SFr1.5971/$ Australian dollar/U.S. dollar = A$1.8215/$ Australian dollar/Swiss franc = A$1.1300/SFr Ignoring transaction costs, does Maria have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would she take to make an arbitrage profit, and how would she profit if she has $1,000,000 available for this purpose
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