Question

**Swissie Triangular Arbitrage.** The following
exchange rates are available to you. (You can buy or sell at the
stated rates.) Assume you have an initial SF 13,000,000. Can you
make a profit via triangular arbitrage? If so, show the steps and
calculate the amount of profit in Swiss francs (Swissies).

Mt Fuji Bank | 90.34 Euro/$ |

Mt. Rushmore Bank | SF 1.02/$ |

Mt. Blanc Bank | 91.97 Euro/SF |

Calculate First arbitrage opportunity attempt below:
**(Round to the nearest cent)**

Attempt number 1: Start with SF to $

Step 1: SF to $ ___________

Step 2: $ to Yen ________

Step 3: Yen to SF ________

Profit or Loss ____________ SF

Attempt ends in a (Profit or Loss)?

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

Attempt number 2: Start with SF to Yen: **(Round to two
decimal places)**

Step 1: SF to yen _________

Step 2: yen to $ ________

Step 3: $ to SF_________

Profit or Loss _________ SF

Attempt ends in a (Profit or loss)?

Answer #1

Attempt number 1: Start with SF to $

Step 1: SF to $ :

=13000000/1.02

=12745098.04

Step 2: $ to Yen :

=13000000/1.02*90.34

=1151392157

Step 3: Yen to SF :

=13000000/1.02*90.34/91.97

=12519214.49

Profit or Loss 12519214.49-13000000=-480785.5076 SF

Attempt ends in a Loss

Attempt number 2: Start with SF to Yen:

Step 1: SF to yen :

=13000000*91.97=1195610000.00

Step 2: yen to $ :

=13000000*91.97/90.34=13234558.34

Step 3: $ to SF :

=13000000*91.97/90.34*1.02=13499249.50

Profit or Loss 13499249.50-13000000=499249.5019 SF

Attempt ends in a Profit

SHOW ALL WORK PLEASE
4. Triangular Arbitrage
Riskless profit using 10,000,000 Swiss franc. The following
exchange rates are available to you. (You can buy or sell at the
stated rates.)
Mt. Fuji Bank
Mt. Rushmore Bank
Mt. Blanc Bank
¥120.00/$ SF 1.6000/$ ¥80.00/SF

Assume you are a currency trader and have an initial SF
12,000,000 to trade. You can buy or sell currencies at the rates
stated below: Mt. Fuji Bank ¥ 92.00/$ Mt. Rushmore Bank SF 1.02/$
Mt. Blanc Bank ¥ 90.00/SF Can you make a profit via triangular
arbitrage? If so, show the steps and calculate the amount of profit
in Swiss francs. [10 marks]

a) Distinguish between Covered interest Arbitrage and Triangular
Arbitrage.
b) You are given these quotes by your bank.
You can sell United States dollars ($) to the bank for 5.10
cedis per $
You can buy United States dollars from the bank for 5.15 cedis
per $
The bank is willing to buy euros for 5.75 cedis per euro
The bank is willing to sell euros for 5.85 cedis per euro
The bank is willing to buy Euros for United...

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.

Cher has $10,000. The following quotations are available to her
for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF).
She may either buy or sell at the stated rates:
U.S.
Bank:$2.4/SF
Bosnia Bank:$3.31/KM
Swiss Bank:SF2.21/KM
What is Cher’s arbitrage profit assuming a triangle arbitrage is
possible? (Round answer to nearest whole number.)

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)

Triangular Arbitrage:
Ignore the bid ask spread and suppose
that you are given the following currency quotes for three markets
(C$ is the symbol for the Canadian $).
- Toronto: S($/C$
)= $0.80
Hamburg: S($/€ ) = $1.28
Vancouver: S(€/C$) = €0.58
a. Use the exchange rates from Toronto
and Hamburg to calculate the
implied euro
price of the Canadian $.
An arbitrage opportunity does exist. Suppose you start
with
$1,000,000. Show exactly how much
profit you would make...

The following Spot exchange rates are available: ¥64.00/SF,
SF1.60/$ and, ¥105.00/$. You have $100,000 available. Can you make
money by triangular arbitrage, and if so, how much?
please show and explain all work!

1. You are a foreign exchange trader and you receive
the following two quotes for spot trading:
- Bank A is willing to trade at $3 per Swiss franc
- Bank B is willing to trade at 1 Swiss franc per dollar.
Is there an arbitrage opportunity to make profit?
(True stands for yes, false stands for no)
2. You are a foreign exchange trader and you receive
the following two quotes for spot trading:
- Bank A is willing to trade...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 14 minutes ago

asked 38 minutes ago

asked 41 minutes ago

asked 51 minutes ago

asked 52 minutes ago

asked 57 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 2 hours ago

asked 2 hours ago