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What the arbitrage profit from the quotes is

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Reference no: EM132999121

Problem 1: You sell 250,000 pesos short at the exchange rate of S(Peso/$)=14. Calculate your profit/loss if the ending exchange rate is S(Peso/$)=16 after a week. (Please keep the sign and two decimal numbers in your answer.)

Problem 2: Two banks give the following quotes on the euro at the same time: Citibank NY $1.2564-82/€ Barclays London: $1.2521-54/€. The arbitrage profit from these quotes is $

Reference no: EM132999121

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