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Suppose 1 = $0.0077 in London, $1 = SF2.00 in New York, and SF1 = 65 in Paris. a. If you begin holding 10,000 yen,
Suppose 1 = $0.0077 in London, $1 = SF2.00 in New York, and SF1 = 65 in Paris.
a. If you begin holding 10,000 yen, how could you make a profit from these exchange rates?
b. Find the abritage profit per yen initially traded. (ignore transaction costs).
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