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Spot rate of EUR/USD: 1.1180 and GBP/USD: 1.5363 quoted in New York.

(i) What would be the price of GBP/EUR in New York?

(ii) If the GBP/EUR was quoted in Austria at GBP/EUR at 1.30, do you have an arbitrage opportunity?

(iii) If you have, from which market you will buy GBP and sell in which market at which price?

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M92795083

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