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Question
Use the following information about the spot exchange rates to answer the questions 18 20.
Suppose that the spot exchange rates for British pound quoted in two locations are:
| Buy 1 pound () | Sell 1 pound () | |
| Barclays, London | $1.55 | $1.58 |
| Citi, New York | $1.60 | $1.63 |
Suppose that you have 1 million, how much arbitrage profit can you make?
a. -30,674.85
b. 12,658.23
c. 31,627.64
d. 51,612.90
Answer
This answer is hidden. It contains 1 characters.
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