Arbitrage Illustration 4


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Arbitrage Illustration 4

Consider following spot quotations:

USD CHF 1.4950/1.4965 Zurich Bank

CHF USD 0.6690 / 0.6700 Bank of New York

Are there any arbitrage-gains possible?

(Ans.: 1,000,155 SFR. Thus gain of 155 SFr)


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