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You are a retail investor. Looking at your Bloomberg terminal, you find the following quotes: EUR/USD = 1.1141 - 43 GBP/USD = 1.3988 - 89
You are a retail investor. Looking at your Bloomberg terminal, you find the following quotes:
EUR/USD = 1.1141 - 43
GBP/USD = 1.3988 - 89
EUR/GBP= 0.9004 - 07
a)Compute the implied cross-rate for the EUR/USD
b)Are there any triangular arbitrage opportunities? If yes, how would you exploit them if you have $100,000 to invest?
EUR/USD = 1.1141 - 43
GBP/USD = 1.3988 - 89
EUR/GBP= 0.9004 - 07
a)Compute the implied cross-rate for the EUR/USD
b)Are there any triangular arbitrage opportunities? If yes, how would you exploit them if you have $100,000 to invest?
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a To compute the implied crossrate for the EURUSD we can use the exchange rates provided for EURUSD ...
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An Introduction To Statistical Methods And Data Analysis
Authors: R. Lyman Ott, Micheal T. Longnecker
7th Edition
1305269470, 978-1305465527, 1305465520, 978-1305269477
