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The following are New York closing rates for A$/US$ and $/£: A$/$ = 1.5150; $/£ =...

The following are New York closing rates for A$/US$ and $/£: A$/$ = 1.5150; $/£ = $1.2950 Calculate the cross rate for £ in terms of A$ (A$/£). If £ is trading at A$1.95/£ in London (cross market) on the same day, is there an arbitrage opportunity? If so, show how arbitrageurs with £ could profit from this opportunity and calculate the arbitrage profits in £ and in percent. (15 points)f

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AS AMOUNT WAS NOT GIVEN, I HAVE ASSUME THAT 10000 POUND AVAILABLE.

NEED TO MAKE ANY CHANGE, LET ME KNOW, THANK YOU, HAPPY TO HELP YOU.

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