Compute the arbitrage profit that can be earned

Compute the arbitrage profit that can be earned

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Reference no: EM131980667

Consider the following quotes (bid/ask):

JPY/USD

109.00/109.50

EUR/USD

.98/.99

1) Compute the bid and ask prices for the JPY/EUR ‘cross rate’

2) Suppose another dealer quotes an ask price of 115 JPY/EUR. Compute the arbitrage profit that can be earned with $1,000.

Reference no: EM131980667

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