Question
You have the following quotations for the Chinese yuan (CNY) and the Australian dollar (A$) at the HSBC Bank in China and National Australia Bank
You have the following quotations for the Chinese yuan (CNY) and the Australian dollar (A$) at the HSBC Bank in China and National Australia Bank in Australia. Can you make a locational arbitrage profit? If yes, calculate the arbitrage profit if you have A$1.52 million or CNY3.60 million. (enter the whole number without sign or symbol)
| Currency | HSBC in China | National Australia Bank in Australia | ||
| Bid | Ask | Bid | Ask | |
| Chinese yuan | A$0.2014 | A$0.2201 | A$0.2446 | A$0.2628 |
| Australian dollar | CNY4.3840 | CNY4.8602 | CNY3.8024 | CNY4.0750 |
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
