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Suppose that Cloudastries Bank is a U.S.-based financial intermediary that serves the foreign exchange market....

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Finance

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Suppose that Cloudastries Bank is a U.S.-based financial intermediary that serves the foreign exchange market. Assume that this bank is widing to both purchase and sell currency for the same rate. In other words, assume there is no bid/ask spread. Suppose Cloudastries has made the following direct quotations: Additionally, Coudastries has quoted a cross exchange rate of 1 curo =4.01 pesos. After exchanging dollars for euros, the next step in triangular arbitrage is to exchange those euros for pesos: If vou use all 5,555.56 to purchase pesos from Cloudastries, you would fecehve pesos

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