Question
The Singapore dollar- U.S dollar(S$/$) spot exchange rate is S$1.60/S, the Canadian dollar- U.S dollar(CD/$),CD1.33/$ and the S$/CD1.15. Determine the triangular arbitrage profit that is
The Singapore dollar- U.S dollar(S$/$) spot exchange rate is S$1.60/S, the Canadian dollar- U.S dollar(CD/$),CD1.33/$ and the S$/CD1.15. Determine the triangular arbitrage profit that is possible if you have $1000000
a. $46093 loss
b. $46093 profit
c. $44063 profit
d. no profit is possible
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Investment Analysis and Portfolio Management
Authors: Frank K. Reilly, Keith C. Brown, Sanford J. Leeds
11th Edition
1305262999, 1305262997, 035726164X, 978-1305262997
