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What should the cross-rate be

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Question - Assume spot FX rates of 1.41 $/SF and 0.92 £/SF. What should the cross-rate be for $/£? If the direct cross-rate is 1.51 $/£, describe the triangular arbitrage strategy (Use a numerical example starting with 1,000,000 of the overvalued currency)

Reference no: EM132965109

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