Two Point Arbitrage Illustration 1


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Two Point Arbitrage Illustration 1

 

The buying rate for SFr spot in New York is $0.7884.

A corporate treasurer is going to buy SFr in Zurich at 1.2589 SFr per $ and sell them in     New York. Would you advise to go ahead on this transaction?

(Ans.: No. Loss 0.0075$ / $ OR Loss of 7483 $/1 million$)

 


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