Question

Assume the following information:

Exchange rate of Singapore dollar in USD = 0.32 USD/SGD

Exchange rate of pound in USD = 1.49 USD/GBP

Exchange rate of pound in Singapore dollars = 4.8 SGD/GBP

If you have 1 million USD to conduct one cycle of triangular
arbitrage, what will be your profit?

Answer #1

USD | GBP = USD/ 1.49 | SGD = GBP x 4.8 | USD=SGP x .32 |

1000000 | 671140.9396 | 3221476.51 | 1030872.483 |

US Dollar has Inceased by | 30872.48 |

Explanation:

we have USD 1000000 in hand. If we convest it to GBP, we will get Equivalent GBP = 1000000/1.49 = GBP 671140. 94

If we convert GBP of 671140. 94 into SGD, we will get = 671140. 94 x 4.8 = SGD 3221476.51 .

Now, we are again converting the SGD into US dolloar using convesrion rate 0.32 USD / SGD

We got USD value of 1030872.48 USD.

Initial investment 1000000

Hence, Profit = 1030872.48 - 1000000 = 30872.48

Assume the following information:
Exchange rate of Singapore dollar in USD = 0.32 USD/SGD
Exchange rate of pound in USD = 1.45 USD/GBP
Exchange rate of pound in Singapore dollars = 4.88 SGD/GBP
If you have 1 million USD to conduct one cycle of triangular
arbitrage, what will be your profit?

Using the information below, what will be the spot rate of the
Singapore dollar (USD/SGD) in three years based on the
international fisher effect (=UIRP)? KEEP AT LEAST TWO DECIMALS
Spot Exchange rate of the Singapore dollar (USD/SGD) =0.71
Three-year annualized IR in the U.S. ( i.e., annual rate
expected each year over the following three years), in% = 3.6
Three-year annualized interest rate in Singapore (%) =0.62

You are given the following exchange rate data:
Canadian Dollar: CAD 1.1280/USD
British Pound: USD
1.8840/GBP
(a) How many Canadian Dollars can be purchased with 1 British
Pound?
(b) If you learn that the cross rate quoted by the Bank is
actually CAD 2.1280/GBP, what would be your triangular arbitrage
profits if you could put USD $1,000,000 into this arbitrage? To get
full credits, you need to include step by step instructions on how
to carry out...

Calculate the possible rate for buying SGD (Singapore Dollar) in
exchange for selling jPY as well as the possible rate for selling
SGD in exchange for buying JPY. Assume that the exchange rates (Bid
- Offered rate) are quoted as follows : USD 1 = JPY 118.10-118.20,
USD 1 = SGD 1.7210-1.7215

Assume the following information:
USD/AUD, bid/ask: 0.68 / 0.72
USD/MXP, bid/ask: 0.072 / 0.075
MXP/AUD, bid/ask: 8.17 / 8.32
Assume you have 1 million USD to conduct one cycle of triangular
arbitrage. What will be your profit from implementing this
strategy? Remember to pay careful attention whether you're trading
at the bid or the ask with the bank.

Part II: Triangular Arbitrage The quotations of exchange rates
of US dollars, British pound, and the New Zealand dollar in
National Bank is as below. Quoted Bid Price Quoted Ask Price
USD/GBP 0.65 0.66 NZD/USD 0.50 0.52 GBP/NZD 2.72 2.75 Is the
triangular arbitrage feasible? If yes, how much is the triangular
arbitrage profit when you have $500,000 to invest. If no, please
explain why

Part II: Triangular Arbitrage
The quotations of exchange rates of US dollars, British pound,
and the New Zealand dollar in National Bank is as below.
Quoted Bid Price
Quoted Ask Price
USD/GBP
0.65
0.66
NZD/USD
0.50
0.52
GBP/NZD
2.72
2.75
Is the triangular arbitrage feasible? If yes, how much is the
triangular arbitrage profit when you have $500,000 to invest. If
no, please explain why (20 points)

lemons corp. will receive 451,000 Singapore dollars (SGD) in 60
days. The current spot rate is USD 1.0817/SGD. The 60-day European
call options on the Singapore dollar with an exercise price of USD
1.2572/SGD are traded with a premium of USD 0.08 while the 60-day
European put options on the Singapore dollar with an exercise price
of USD 1.2818/SGD are traded with a premium of USD 0.05. Suppose,
Clemons corp. wants to hedge its position using options. If the
spot...

The following exchange rates are available to you. (You can buy
or sell at the stated rates.)
SGD/USD
1.65
USD/CHY
0.16
SGD/CHY
0.30
Assume you have an initial USD 12,000. Can you make a
profit via triangular arbitrage? If so, show the steps
and calculate the amount of profit in USD.

You observe the following exchange rate quotes:
$ 1.1830 / EUR
$ 1.5240 / GBP
GBP 0.7815 / EUR
If you start with $ 1 million, what arbitrage profit in dollars
can you make using triangular arbitrage?
Please show work

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 4 minutes ago

asked 10 minutes ago

asked 29 minutes ago

asked 29 minutes ago

asked 35 minutes ago

asked 43 minutes ago

asked 46 minutes ago

asked 47 minutes ago

asked 47 minutes ago

asked 49 minutes ago

asked 50 minutes ago

asked 50 minutes ago