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Salim is an expert in cross-rate arbitrage and notices the below quotes CHF 8.0000 = 1 USD AUD 4.0000 = 1 USD AUD 0.4000 =

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Salim is an expert in cross-rate arbitrage and notices the below quotes CHF 8.0000 = 1 USD AUD 4.0000 = 1 USD AUD 0.4000 = 1 CHF ( quoted cross rate). Which one of the following is the calculated cross rate and what decision will be taken by Salim regarding arbitrage? O a. Calculated cross rate is AUD 0.3000 = 1 CHF and Arbitrage opportunity is possible O b. Calculated cross rate is AUD 0.1000 = 1 CHF and Arbitrage opportunity is possible O c. Calculated cross rate is AUD 0.5000 = 1 CHF and Arbitrage opportunity is not possible O d. None of the options

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