1-Exchange rate for Turkish Lira (TL) is $2 Exchange rate for Swiss Franc is $4 The...

1-Exchange rate for Turkish Lira (TL) is $2

Exchange rate for Swiss Franc is $4

The cross rate between franc and TL is 3 francs per TL.

Is there an triangle arbitrage opportunity to make profit?

True

False

2-Exchange rate for Turkish Lira (TL) is $2

Exchange rate for Swiss Franc is $4

The cross rate between franc and TL is 3 francs per TL.

How much profit would you make at most if you have $100?

		A-$200
		B-$400
		C-$500
		D-$300

Expert Solution

Rahul Sunny answered 3 years ago

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1. Exchange rate for Turkish Lira (TL) is $2 Exchange rate for Swiss Franc is $4 The cross rate between franc and TL is 3 francs per TL. Is there an triangle arbitrage opportunity to make profit? 2. Exchange rate for Turkish Lira (TL) is $2 Exchange rate for Swiss Franc is $4 The cross rate between franc and TL is 3 francs per TL. How much profit would you make at most if you have $100?

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