Orchard Bank gives the following quotes of the USD, Bid Ask IDR/USD 14430 14450 SGD/USD 1.3935...

Orchard Bank gives the following quotes of the USD,

Bid Ask

IDR/USD 14430 14450

SGD/USD 1.3935 1.3945

(A) What are the synthetic IDR/SGD bid-ask quotes?

(B) If Asia Bank quotes IDR/SGD at 10320-10420, where is it cheaper to buy IDR with SGD? Are there any arbitrage opportunities?

Solutions

Expert Solution

Synthetic bid-ask quotes IDR/SGD can be calculated by dividing IDR/USD by SGD/USD.

jeff jeffy answered 1 year ago

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