Question
The following are New York closing rates for A$/US$ and $/: A$/$ = 1.5150; $/ = $1.2950 (a) Calculate the cross rate for in terms
The following are New York closing rates for
A$/US$ and $/: A$/$ = 1.5150; $/ = $1.2950
(a) Calculate the cross rate for in terms of A$ (A$/).
(b) If is trading at A$1.95/ in London (cross market) on the same day, is there an arbitrage opportunity? If so, show how arbitrageurs with could profit from this opportunity and calculate the arbitrage profits in and in percent
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Commodity Market Trading And Investment
Authors: Tom James
1st Edition
1137432802, 978-1137432803
