Question
Use the following information to answer this question. The Thai bhat to USD dollar exchange rate is quoted at Bank A as THB 30.55 =1
Use the following information to answer this question.
The Thai bhat to USD dollar exchange rate is quoted at Bank A as THB 30.55 =1 USD.
The US dollar to UK pound (GBP) exchange rate is quoted at Bank B as USD 1.40 = 1 GBP.
You learn that Bank C is making a direct market between the pound and the bhat of THB 43 = 1 GBP.
How much profit can an astute trader with $4,271,911 make from triangular arbitrage between Banks A, B, and C?
Include all the decimal places provided in the problem when using exchange rates in your calculations. Round your answer to the nearest dollar.
Use the following information to answer this question. The Thai bhat to USD dollar exchange rate is quoted at Bank A as THB 30.55 =1 USD. The US dollar to UK pound (GBP) exchange rate is quoted at Bank B as USD 1.40 = 1 GBP. You learn that Bank C is making a direct market between the pound and the bhat of THB 43=1 GBP. How much profit can an astute trader with $4,271,911 make from triangular arbitrage between Banks A, B, and C? Include all the decimal places provided in the problem when using exchange rates in your calculations. Round your answer to the nearest dollar Step by Step Solution
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The Handbook Of Financial Communication And Investor Relations
Authors: Alexander V. Laskin
1st Edition
1119240786, 978-1119240785
