Solution-Dtetermining the gain for the swiss franc bid rate

Dtetermining the gain for the swiss franc bid rate

Reference no: EM131441419

Question: Assume the bid rate of a Swiss franc is $.57 while the ask rate is $.579 at Bank X. Assume the bid rate of the Swiss franc is $.560 while the ask rate is $.566 at Bank Y. Given this information, what would be your gain if you use $1,000,000 and execute locational arbitrage? That is, how much will you end up with over and above the $1,000,000 you started with?

Reference no: EM131441419

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Dtetermining the gain for the swiss franc bid rate

Reference no: EM131441419

Reference no: EM131441419

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