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Urgent!!!!!! ****No Excel Work please***** 2. A) Following are the quotation by Bank XYZ Value of a British Pound in U.S. dollars Value of a
Urgent!!!!!!
****No Excel Work please*****
2. A) Following are the quotation by Bank XYZ Value of a British Pound in U.S. dollars Value of a Canadian dollars (C$) in U.S. dollars Value of British pound in Canadian dollar (C$) Quoted Bid price $1.60 $ 0.80 C$ 2.10 Quoted Ask Price $1.61 $ 0.81 C$ 2.20 Assume that you are a speculator and have $10,000. . What will be your steps to gain from triangular arbitrage? ii. Will triangular arbitrage be worthwhile under this condition? B) Assume that the deposit rate of US (home country) is 5%, while the deposit rate of Mexico (foreign country) is 12%. According to international fisher effect theory what should be adjustment in Mexican Peso. If the spot rate of Mexican Peso is $ 0.085, what will be the rate after adjustmentStep by Step Solution
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