Question
You are a foreign exchange trader and you receive the following two quotes for spot trading: Bank A is willing to trade at $1.50 per
You are a foreign exchange trader and you receive the following two quotes for spot trading: Bank A is willing to trade at $1.50 per Swiss franc; Bank B is willing to trade at 0.50 Swiss franc per dollar. Is there an opportunity to make an arbitrage profit? If there is, explain what you will do. If there is not, why not?
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Macroeconomics
Authors: David C. Colander
10th edition
1259663043, 1259663048, 978-1259663048
