Arbitrage Illustration 11
Following rates are quoted by 3 different dealers:
0.0052 UK £ per ¥ : Dealer A
2.2832 CHF per UK £ : Dealer B
0.0130 CHF per ¥ : Dealer C
Are there any arbitrage-gains possible? Calculate gains on ¥ 1 million.
(Ans.: CHF/¥ 0.0119
Given quote is CHF/¥ 0.0130. Since there is a difference, arbitrage gains are possible)
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