The following are quotes for several U.S. currency dealers. Dealer A B C D E Japanese yen 108.98 - 109.00 109.02 - 109.06 108.99 -...
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The following are quotes for several U.S. currency dealers.
Dealer
A
B
C
D
E
Japanese yen
108.98 - 109.00
109.02 - 109.06
108.99 - 109.02
109.01 - 109.05
108.97 - 109.01
British pounds
1.2374 - 1.2376
1.2376 - 1.2378
1.2378 - 1.2381
1.2376 - 1.2378
1.2373 - 1.2375
Inter-dealer arbitrage
1a. Is there an arbitrage opportunity in Japanese yen? If so,what exchanges should you make to take advantage of it? (Bespecific about which dealer you would select, what currency youwould buy from or sell to that dealer, and how much of the othercurrency you would pay or receive.
b. How profitable is a round trip trade? (State theprofitability either in percent or basis points.)
The following are quotes for several U.S. currency dealers.
Dealer | A | B | C | D | E |
Japanese yen | 108.98 - 109.00 | 109.02 - 109.06 | 108.99 - 109.02 | 109.01 - 109.05 | 108.97 - 109.01 |
British pounds | 1.2374 - 1.2376 | 1.2376 - 1.2378 | 1.2378 - 1.2381 | 1.2376 - 1.2378 | 1.2373 - 1.2375 |
Inter-dealer arbitrage
1a. Is there an arbitrage opportunity in Japanese yen? If so,what exchanges should you make to take advantage of it? (Bespecific about which dealer you would select, what currency youwould buy from or sell to that dealer, and how much of the othercurrency you would pay or receive.
b. How profitable is a round trip trade? (State theprofitability either in percent or basis points.)
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The following are quotes for several U.S. currency dealers.DealerABCDEJapanese yen108.98 - 109.00109.02 - 109.06108.99 - 109.02109.01 - 109.05108.97 - 109.01British pounds1.2374 - 1.23761.2376 - 1.23781.2378 - 1.23811.2376 - 1.23781.2373 - 1.2375Inter-dealer arbitrage1a. Is there an arbitrage opportunity in Japanese yen? If so,what exchanges should you make to take advantage of it? (Bespecific about which dealer you would select, what currency youwould buy from or sell to that dealer, and how much of the othercurrency you would pay or receive.b. How profitable is a round trip trade? (State theprofitability either in percent or basis points.)
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