Arbitrage Illustration 7


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Arbitrage Illustration 7

USD/AUD                  Spot 1.3135/1.3155

USD/CAD                      Spot 1.4835/1.4855

The above quotes are available in the US market. At the same time CAD/AUD 0.8895/0.8915 is available in Sydney.

Find out the arbitrage opportunities through synthetic mechanism.

(Ans.: Gain 3096 CAD on 1 million CAD)


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