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Problem 4 You are given the following rates.? Are there arbitrage opportunities? If so, what is the arbitrage profit? Bid S(GBP/SEK) 0.0800 S(DKK/GBP) 8.8200 Cross-rate

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Problem 4 You are given the following rates.? Are there arbitrage opportunities? If so, what is the arbitrage profit? Bid S(GBP/SEK) 0.0800 S(DKK/GBP) 8.8200 Cross-rate S(SEK/DKK) 1.4078 No-arbitrage S(SEK/DKK) 1.4084 Ask 0.0805 8.8204 1.4081 1.4172

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