Question
Suppose we observe the following for the Canadian dollar (CAD) and the British Pound (GBP): 1 USD = 1.134 CAD 1 USD = 0.714 GBP
Suppose we observe the following for the Canadian dollar (CAD) and the British Pound (GBP):
1 USD = 1.134 CAD 1 USD = 0.714 GBP Suppose the cross-rate is quoted as: 1 CAD = 0.953 GBP
What is the arbitrage profit on $10,515?
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Principles Of Finance With Excel
Authors: Simon Benninga
2nd Edition
0199755477, 9780199755479
