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Question 4 A currency trader receives the following quotes for spot exchange change rates in American terms. $ 0 . 7 4 4 9 /
Question
A currency trader receives the following quotes for spot exchange change rates in American
terms.
$ Singapore Dollar
$ Euro
Euro Singapore Dollar
Is there any arbitrage opportunity? For simplicity, ignore the bidask spread.
Assume the trader has $ to start with, what is the total arbitrage profit denominated in
the US dollar and show the transaction details?
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