Question
Suppose David Sylvian, a trader at foreign exchange desk of Goldman Sachs in London observes the following exchange rates of the euro relative to pound
Suppose David Sylvian, a trader at foreign exchange desk of Goldman Sachs in London
observes the following exchange rates of the euro relative to pound and the dollar and
dollar relative to the pound:
EUR 1.1555/GBP or GBBP 0.86543/EUR
EUR 0.76388/USD or USD 1.3091/EUR
USD 1.5386/GBP or GBP 0.64994/USD
Can David make an intermarket arbitrage profit? Assume he has EUR10,000,000 to begin
with.
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Introduction to Finance Markets Investments and Financial Management
Authors: Melicher Ronald, Norton Edgar
15th edition
9781118800720, 1118492676, 1118800729, 978-1118492673
