Question
you notice the following quotes: GBP/US dollar = GBP 0.69/US AUD/US dollar = 1.8215/US AUD/GBP = 2.6413/GBP. Ignoring transaction costs, do you have na arbitrage
you notice the following quotes: GBP/US dollar = GBP 0.69/US AUD/US dollar = 1.8215/US AUD/GBP = 2.6413/GBP. Ignoring transaction costs, do you have na arbitrage opportunity based on those quotes. If so, what steps would be needed and how much profit if you had 2 million avaliable?
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Financial Management Core Concepts
Authors: Raymond M Brooks
3rd edition
133866696, 978-0133866698
