1,2, AND 3 DETAILED CALCULATIONS PLEASE ILL BE POSTING 4, 5, 6, AND 7 IN...

70.2K

Verified Solution

Question

Finance

1,2, AND 3

DETAILED CALCULATIONS PLEASE

ILL BE POSTING 4, 5, 6, AND 7 IN ANOTHER ONE BECAUSE APPARENTLY I CAN ONLY ASK 4 QUESTIONS PER POST

imageimage

NY 1. Quotes for one U.K. pound: London Bid price $1.59 $1.63 Ask price $1.60 $1.64 a. What is the net profit from the locational arbitrage, if you have $1,600 to invest? b. Which price will increase after the locational arbitrage? c. Which price will decrease after the locational arbitrage? $1.61 $0.20 2. Value of pound in $ Value of MYR in $ Value of pound in MYR a. Which currency is overpriced? MYR8.10 b. What is the net profit from the triangular arbitrage, if you have $10,000 to invest? C. Which price(s) will increase after the triangular arbitrage? d. Which price(s) will decrease after the triangular arbitrage? $1.60 $0.80 3. Value of pound in $ Value of C$ in $ Value of pound in C$ a. Which currency is overpriced? C$1.90 b. What is the net profit from the triangular arbitrage, if you have $10,000 to invest? c. Which price(s) will increase after the triangular arbitrage? d. Which price(s) will decrease after the triangular arbitrage? NY 1. Quotes for one U.K. pound: London Bid price $1.59 $1.63 Ask price $1.60 $1.64 a. What is the net profit from the locational arbitrage, if you have $1,600 to invest? b. Which price will increase after the locational arbitrage? c. Which price will decrease after the locational arbitrage? $1.61 $0.20 2. Value of pound in $ Value of MYR in $ Value of pound in MYR a. Which currency is overpriced? MYR8.10 b. What is the net profit from the triangular arbitrage, if you have $10,000 to invest? C. Which price(s) will increase after the triangular arbitrage? d. Which price(s) will decrease after the triangular arbitrage? $1.60 $0.80 3. Value of pound in $ Value of C$ in $ Value of pound in C$ a. Which currency is overpriced? C$1.90 b. What is the net profit from the triangular arbitrage, if you have $10,000 to invest? c. Which price(s) will increase after the triangular arbitrage? d. Which price(s) will decrease after the triangular arbitrage

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students