Assume the following information:
$\begin{array}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price } \
\text {Value of an Australian dollar (AS) in $\$$ } & \text { \$ 0.67 }&\text { \$ 0.69 } \
\text {Value of Mexican peso in $\$$ } &\text { \$ .074 }&\text { \$ .077 } \
\text {Value of an Australian dollar in } && \
\text {Mexican pesos } &\text { 8.2 }&\text {8.5 } \
\end{array}$
Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?
A) $6,133
B) $2,368
C) $6,518
D) $13,711

Question

Assume the following information:
$\begin{array}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price }  \
\text {Value of an Australian dollar (AS) in $\$$ } & \text { \$ 0.67 }&\text { \$ 0.69 } \
\text {Value of Mexican peso in $\$$ } &\text { \$ .074 }&\text { \$ .077 }  \
\text {Value of an Australian dollar in } && \
\text {Mexican pesos } &\text {  8.2 }&\text {8.5 }  \
\end{array}$
Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?
A) $6,133
B) $2,368
C) $6,518
D) $13,711

Quizplus · Accepted Answer

The Answer of Assume the following information:
$\begin{array}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price }  \
\text {Value of an Australian dollar (AS) in $\$$ } & \text { \$ 0.67 }&\text { \$ 0.69 } \
\text {Value of Mexican peso in $\$$ } &\text { \$ .074 }&\text { \$ .077 }  \
\text {Value of an Australian dollar in } && \
\text {Mexican pesos } &\text {  8.2 }&\text {8.5 }  \
\end{array}$
Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?
A) $6,133
B) $2,368
C) $6,518
D) $13,711

Assume the Following Information Assume You Have $100,000 to Conduct Triangular Arbitrage