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Suppose you receive the following quotes from a dealer. The bid and ask prices for USD...

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Finance

Suppose you receive the following quotes from a dealer. The bidand ask prices for USD are MYR4.15 and MYR4.18, respectively. Thesame dealer also quotes the bid and ask prices for GBP to be atMYR5.10 and MYR5.15. Given the following quotes, calculate the USDcost of obtaining GBP10,000.

A. $8,058

B. $8,196

C. $12,200

D. $12,410

Suppose you get the following exchange rate quotes:MYR4.4365/USD, MYR3.34/AUD, and USD0.74/AUD. Determine thetriangular arbitrage profit that is possible if you haveMYR1,000,000 to perform arbitrage.

A. MYR17,063

B. MYR17,210

C. MYR17,359

D. MYR17,590

Answer & Explanation Solved by verified expert
3.9 Ratings (619 Votes)
To calculate cross currency calculation we first understand what data we have We have USDMYR415418 bid415 and ask 418 and GBPMYR510515 bid510 and ask515 Now we have to find GBPUSD GBPUSD GBPMYRbid MYRUSDbid    See Answer
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