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Question 11 The table below presents quotes and cross-quotes on GBP and CHF USD/GBP: Price for GBP in New York in USDR USD/CHF Price for

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Question 11 The table below presents quotes and cross-quotes on GBP and CHF USD/GBP: Price for GBP in New York in USDR USD/CHF Price for CHF in Chicago in USD CHF/GBP Price for GBP in Zurich in CHF USD 1.725 for 1 GBP USD 0.645 for 1 CHE GBPO 3845 for 1 CHF The three steps which will create triangular arbitrage profit are as follows first step. convert second step, convert and the seconvert USD to CHF CHF to GUP: GOP to USD USD to CHF. GBP to CHR GBP USD USD to GOP: CHF to GBP: CHF to USD USD GBP GOP CHF CHF USD

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