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  3. national bank quotes the following for the british

National Bank quotes the following for the British pound and the New Zealand dollar: ...

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Finance

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National Bank quotes the following for the British pound and the New Zealand dollar:

Quoted Bid Price Quoted Ask Price

Value of a British pound () in $ $1.61 $1.62

Value of a New Zealand dollar (NZ$) in $ $ .55 NZ $ .56 NZ

Value of a British pound in New Zealand dollars $2.95 $2.96

Assume you have $10,000 to conduct triangular arbitrage. What is your profit from implementing this strategy? (showing the problem solving steps)

1, (13 points)National Bank quotes the following for the British pound and the New Zealand dollar: Value of a British pound () in $ Value of a New Zealand dollar (NZ$) in $ Value of a British pound in New Zealand dollars Quoted Bid Price $1.61 $ .55 NZ $2.95 Quoted Ask Price $1.62 $ .56 NZ $2.96 Assume you have $10,000 to conduct triangular arbitrage. What is your profit from implementing this strategy? (showing the problem solving steps towards your final answer to get full credit)

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