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An investor who has 1000 USD in hand and want to profit using the cross rate...

An investor who has 1000 USD in hand and want to profit using the cross rate what is the profit?

SGD1.39/USD
THB 20.52/ SGD
THB 31.83/ USD
business   finance   
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Answer #1

Start with 1000 USD
Convert to 31.83*1000 THB
Convert 31.83*1000 THB to 31.83*1000/20.52 SGD
Convert 31.83*1000/20.52 SGD to 31.83*1000/20.52*1/1.39 USD=1115.949346 USD

Net profit=1115.949346-1000=115.949346 USD

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