Arbitrage Illustration 5


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Arbitrage Illustration 5

Following rates are quoted by 3 different dealers:

0.6405    UK£ per US$              Dealer A

2.8606    AU$ per UK£             Dealer B

1.8402    AU$ per US$              Dealer C

Are there any arbitrage-gains possible?

(Ans.: Thus there is a net gain of 436 US$)


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