Assume the following information:
USD/AUD, bid/ask: 0.65 / 0.72
USD/MXP, bid/ask: 0.072 / 0.075
MXP/AUD, bid/ask: 8.09 / 8.49
Assume you have 1 million USD to conduct one cycle of triangular
arbitrage. What will be your profit from implementing this
strategy? Remember to pay careful attention whether you're trading
at the bid or the ask with the bank.
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Assume the following information: USD/AUD, bid/ask: 0.65 / 0.72 USD/MXP, bid/ask: 0.072 / 0.075 MXP/AUD, bid/ask:...
The following bid-ask rates are offered by three banks: Bid - Ask Bank O SGD/AUD 1.01 1.06 Bank P AUD/MYR 3.30 3.40 Bank Q SGD/MYR 3.05 3.25 Calculate the triangular arbitrage by starting with MYR1000.
Assume the following information: Quoted Bid Price $0.67 5.074 Value of an Australian dollar (AS) in $ Value of Mexican peso in $ Value of an Australian dollar in Mexican pesos Quoted Ask Price $0.69 $.077 8.2 8.5 Assume you have $250,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy? $6,133 O $5.921 $6,518 $5,257 O $2.368
a) Bid Price of New Zealand Dollar - JP Morgan Bank USD0.6533 and Well Fargo USD0.6503 Ask Price of New Zealand Dollar - JP Morgan Bank USD0.6563 and Well Fargo USD0.6523 Justify whether locational arbitrage is possible. If so, explain the steps involved in locational arbitrage, and estimate the profit from this arbitrage if you had USD1,000,000 to use. Discuss market forces factors that would occur to eliminate any further possibilities of locational arbitrage. (6 marks) b) Currency Pair Quoted...
Assume the following information: Philippine Peso AF Bank LifeStore Bank Bid Price $.0192 $.0186 Ask Price $.0197 $.0189 Assuming you have $1,000,000 to invest, what would your profits (in dollars) be from Locational Arbitrage? If it is not possible to profit, answer 0. Round your answer to the nearest whole number and don't use commas or currency signs. If your answer is negative, indicate that with a dash in front of the number (ie. -98026). Answer: