Suppose f15$0.0077 in London, $15SF2.00 in New York, and SF1 5 f65 in Paris. a. If you begin by holding 10,000 yen, how could you make a profit from these exchange rates? b. Find the arbitrage profit...


Suppose f15$0.0077 in London, $15SF2.00 in New York, and SF1 5 f65 in Paris.


a. If you begin by holding 10,000 yen, how could you make a profit from these exchange rates?


b. Find the arbitrage profit per yen initially traded. (Ignore transaction costs.)



May 26, 2022
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