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Economics

Suppose you have $1 million US dollar credit and have access to the following three spot exchange rates:

0.6158 £/$
10.3250 Dkr/£
6.5445 Dkr/$

Dkr: Danish krone
£: UK pound
$: US dollar

a) Is there any (triangular) arbitrage opportunity? How do you detect it?
b) How large is the net profit if triangular arbitrage is applied?

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Microeconomics, Economics

Category:- Microeconomics
Reference No.:- M964966

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