Question
You are a trader in Canberra and currently observe the following exchange rates on the trading screen for the Australian dollar (AUD), Japanese Yen (JPY),
You are a trader in Canberra and currently observe the following exchange rates on the trading screen for the Australian dollar (AUD), Japanese Yen (JPY), and United States (US) dollar (USD):
AUD per USD (AUD/USD) 1.4531 – 1.4551
JPY per AUD (JPY/AUD) 77.95 – 78.78
JPY per USD (JPY/USD) 105.29 – 105.82
Suppose that you have AUD 500,000 in your trading account and interest rates are 0.
Can you identify any positive arbitrage opportunities (in AUD) by using these exchange rates?
Explain and show your working clearly and completely.
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ANS WER No there are no positive arbit rage opportunities with these exchange rates and interest ra...
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Spreadsheet Modeling And Decision Analysis A Practical Introduction To Management Science
Authors: Cliff T. Ragsdale
5th Edition
324656645, 324656637, 9780324656640, 978-0324656633
