Find the maximum arbitrage profit available

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Reference no: EM132036281

Problem

Use the following to answer the next two questions. Suppose a banker observed the following direct spot quotations for dollars and euros. Bank X: $1.1029-32 Bank Y: $1.1034-35 Bank Z: $1.1028-31

Find the maximum arbitrage profit available (in terms of dollars) to a banker with 4 million dollars at her disposal. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your answer.

Reference no: EM132036281

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