Question
The following are New York closing rates for C$/US$ and SFr/US$: C$/$ = 1.2450; SFr/$ = 0.9350 (a) Calculate the cross rate for C$ in
The following are New York closing rates for C$/US$ and SFr/US$:
C$/$ = 1.2450; SFr/$ = 0.9350
(a) Calculate the cross rate for C$ in terms of SFr.
(b) If the C$ was trading at SF0.7500 in Zurich on the same day, was there an arbitrage opportunity? If so, show how arbitrageurs with C$ could have profited from this opportunity and calculate the arbitrage profits in C$ and in percent.
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The Complete Direct Investing Handbook
Authors: Kirby Rosplock
1st Edition
1119094712, 978-1119094715
