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Explain the possibility of a arbitrage

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All quotes correctly algebraicallyShow all calculations

Bank A quotes the following JPY/EUR 122. Bank B quotas USD / EUR 1.12. Bank C quotes USD / JPY 0.0099.

a) What would Bank A's quota in JPY/EUR need to be so that there is no possibility of a arbitrage?

b) Make an arbitrage/profit by doing business with these 3 banks.

Reference no: EM133074771

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