Determine percentage bid-ask spreads on pound and euro

Reference no: EM1362889

Suppose the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt.
a. Is there a profitable arbitrage situation? Describe it.
b. Compute the percentage bid-ask spreads on the pound and euro.

Reference no: EM1362889

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