Arbitrage Illustration 10


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Arbitrage Illustration 10

Consider following spot quotations:

1.4960/1.4975             SFr per US$                Zurich Bank

0.6685/0.6690             US$ per SFr                Bank of New York

If there any arbitrage-gains possible, calculate it for USD 1 million.

(Ans.: Thus gain of 76 US $)


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