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Suppose that you observe the following quotes: U.S. Dollar per Mexican Peso 0.05 $/MP Mexican Peso per Euro 22 MP/ 1.01 $/ U.S. Dollar
Suppose that you observe the following quotes: U.S. Dollar per Mexican Peso 0.05 $/MP Mexican Peso per Euro 22 MP/ 1.01 $/ U.S. Dollar per Euro What would your arbitrage profit be (in dollars) if you have $300,000 with which to conduct the arbitrage? Enter your answer in dollars rounded to two decimal places (dollars and cents).
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Derivatives Markets
Authors: Rober L. Macdonald
4th edition
321543084, 978-0321543080
