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Please provide steps. Thank you Bernard Douglas specializes in cross-rate arbitrage. He notices the following quotes: Hong Kong dollar/dollar = HKD . 1274 Australian dollar/U.S.
Please provide steps. Thank you
Bernard Douglas specializes in cross-rate arbitrage. He notices the following quotes: Hong Kong dollar/dollar = HKD . 1274 Australian dollar/U.S. dollar =A$.6375/$ Australian dollar/Swiss franc =A$5.0000/HKD Ignoring transaction costs, does Doug Bernard have an arbitrage opportunity based on these quotes? If there is an arbitrage opportunity, what steps would he take to make an arbitrage profit, and how much would he profit if he has $1,000,000 available for this purpose Step by Step Solution
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