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Suppose that youre given these quotes from three different banks: Bank of America: USDEUR 0.700/0.7010 Chase: GBPUSD 1.700/1.701 HSBC: GBPEUR 1.200/1.201 e) What are the
Suppose that youre given these quotes from three different banks: Bank of America: USDEUR 0.700/0.7010 Chase: GBPUSD 1.700/1.701 HSBC: GBPEUR 1.200/1.201
e) What are the cross rates from these quotes? [10] f) Is there any arbitrage opportunity? [5] g) How would you take advantage of any arbitrage situation? [10] h) What is your profit? [5]
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