Arbitrage Illustration 11


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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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