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You observe the following quotes for the pound()and the New Zealand dollar (NZ$): Bid Ask $1.61/ $1.62/ $0.55/NZ$ $0.56/NZ$ What is the implied NZ$/ cross-quote?
You observe the following quotes for the pound()and the New Zealand dollar (NZ$):
Bid Ask
$1.61/ $1.62/
$0.55/NZ$ $0.56/NZ$
- What is the implied NZ$/ cross-quote?
- If the actual NZ$/ is: 2.95 2.96, is arbitrage possible?
- If yes to above, what is the profit from triangular arbitrage if you have $1,000,000?
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