Triangular Arbitrage Illustration 6


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Triangular Arbitrage Illustration 6

 

A New York bank is quoting

USD/GBP: 1.7540/45 and CHF/USD: 1.5700/05

The CHF/GBP quote given by a London Bank is 2.7385/90

Can you make arbitrage gains? How?

(Ans.: Cross Rate 2.7538/2.7554 and Gain 5,396) 


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