What role would the arbitrageur play in the market

Reference no: EM13260374

Does parity exist in the foreign exchange market between the U.S dollar, the Euro, and the Japanese Yen? Utilize any TWO months of futures contracts to show the triangular relationship between the three currencies. Show the triangular relationship for both contract months. If parity doesn't exist, what role would the arbitrageur play in the market? Thus, does parity have to exist, at least to the point considering the cost of transactions? Briefly explain.

Reference no: EM13260374

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