The cross rate implied by the interbank market is 85.76/85.80 In triangular arbitrage, we are not supposed to use implied quote in calculation. Then how come the answer is C?
SSEI QForum Latest Questions
Higher savings permanently affect Y,K,Y/K but not Gy/k. Why?
Gy=Ga+alphaGk+(1-alpha)Gl How is this equal to Gy=Gl+Gy/l ??
When the government cuts interest rate due to a slack in the economy, why does the bond price increase?
When Long Term Eco Growth increases, Credit Risk and Credit Spread decreases. Why does this result in an increase in Bond Price?
How and why is the Aggregate Equity Index= GDP*E/GDP*P/E ratio? And why is GDP ratio and GDP of P/E equal to zero in the long run?
Investor would like earn risk free profit using covered interest rate arbitrage assuming 1 million USD capital. Spot rate 0.85 USD/SF 3 Month forward rate (given) – 0.80 USD/SF. As per covered interest rate arbitrage formula it comes to 0.86 USD/SF. Q- The ...
Can you explain the process of F+S- and F-S+ for a person who tries to make an arbitrage profit where the trade involves 2 currencies.