Given the following exchange rates gbpars 195 gbpusd 13 and, Ask an Expert

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Given the following exchange rates GBPARS 19.5, GBPUSD 1.3 and USDARS 14.25 consider the following:

a. Caculate whether any profit could be made through Triangular Arbitrage.

b. If it were possible to make a profit through triangular arbitrage what would the implications for the financial market place and the role of triangular arbitrage?

c. If the 180 day forward rate for the dollar were GBPARS 21.45 what does this tell you about inflation in Argentina, explain your assumptions and the link with the concept of arbitrage.

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92744241

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