Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The arbitrage method is a profit method in trading various stocks or currencies while taking advantage Exchange rate differences in different exchanges or between different

The arbitrage method is a profit method in trading various stocks or currencies while taking advantage Exchange rate differences in different exchanges or between different currencies. For example, if given that: 1 $ = 0.7 , 1 = 9.5Fr, 1Fr = 0.16 $ Then you can convert $ 1 to pounds and convert them to francs and get: 0.7X9.5X0.16 = $ 1,064 I.e. a gain of 4.6% We will formulate the problem formally: Data n Coins n,, 1 = i and exchange rate table R such that [j, i [R is the value of a unit Currency i In terms of currency units j. Write an algorithm that checks whether there is a series of currencies (vk,, v1) so that the conversions: v1 vk v1 bring profit, i.e. the product R [v1, v2] X R [v2, v3] X X R [vk-1, vk] X R [vk, v1]> 1 If there is such a series it must be returned (if there are several, one of them must be returned)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Temple Of Django Database Performance

Authors: Andrew Brookins

1st Edition

1734303700, 978-1734303704

More Books

Students also viewed these Databases questions