Question
Question 10 A currency trader sees the following exchange rates. 1 USD = 1.355 CAD 1...
Question 10
A currency trader sees the following exchange rates.
1 USD = 1.355 CAD
1 USD = 0.935 EUR
1 EUR = 1.442 CAD
Is the CAD per EUR exchange rate in equilibrium? Calculations required. Briefly explain. Show your work. Use 3 decimals.
Question 11
Refer to information provided above (question 10). If the Treasurer invests 15 million USD, show whether or not it would be possible to profit from arbitrage? Calculationsrequired. Show your work. Use 3 decimals.
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Answer #1
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