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VERY URGENT PLSS HELP Question 3 Ms. Saravathy, a FOREX trader has RM2,500,000 to invest in the FOREX markets. She is looking for any opportunity
VERY URGENT PLSS HELP
Question 3 Ms. Saravathy, a FOREX trader has RM2,500,000 to invest in the FOREX markets. She is looking for any opportunity to arbitrage by exploring on the following information.
Exchange rate:
Bangkok
Bid | Ask | |
S w i s sF r a n c( S F ) | SF0.3243/RM | SF0.3233/RM |
Manila
Bid | Ask | |
S w i s sF r a n c( S F ) | SF0.3225/RM | SF0.3196/RM |
Kuala lumpur
Middle Rate | |
Euro () | 0.2553/RM |
Singapore
Middle Rate | |
Sterling Pound() | 0.2023/RM |
Sydney
Middle Rate | |
Euro () | 1.2645/ |
c. Can she make a profit via triangular arbitrage? fI so, show steps (diagram) and calculate the amount of profit. (6 Marks)
Subject: international finance
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