Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you observe two quotes: euro per dollar = 1 and ye

You observe two quotes: Euro per dollar = 1 and Yen per dollar = 0.5....

90.2K

Verified Solution

Question

Finance

image

You observe two quotes: Euro per dollar = 1 and Yen per dollar = 0.5. That is, the implied cross-rate for Euro per Yen is 2. Suppose you also observe Euro per Yen = 2.2. The trading activity exploiting this difference is called: Covered interest arbitrage A. Forward trade B. Short sale C. Floating swap D. O O O E. Triangle 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