Question

Answer 2.000,000 to engage in triangular arbitrage. The following quotes on the Indian rupee (INR) and Brazilian ris Jones has $ (BRL) and USD are available from, Banks A. B, and C Bank A: 65.24 INR/USD Bank B: 20.25 INR/BRL Bank C: 3.29 BRI/USD s believes it is possible to earn a profit through triangular arbitrage. Is this correct? EXPLAIN how Chris should know whether or not to pursue triangular arbitrage given the rate today (B) Chris follows through with attempting triangular arbitrage. How much money is gained or lost? Show each step in the process below 2. Consider the required article "Understanding the Carry Trade." (A) What are the risks associated with the carry trade discussed in the article? Answer in 2-4 sentences. (B) Do investors face these risks when they engage in Covered Interest Arbitrage? Explain very clearly in 2-4 sentences why or why not

Please answer Q 1