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You are financial manager with $1M USD to invest. The dollar-euro exchange rate is quoted as $1.20 = 1.00 and the dollar-pound exchange rate
You are financial manager with $1M USD to invest. The dollar-euro exchange rate is quoted as $1.20 = 1.00 and the dollar-pound exchange rate is quoted at 1.00. If a bank quotes you a $1.80 = cross rate of 1.00 = 1.50, is there an opportunity for you to earn a risk-free profit with these quotes? If so, what is your profit and return? (not in excel)
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Fundamentals of corporate finance
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
9th edition
978-0077459451, 77459458, 978-1259027628, 1259027627, 978-0073382395
