Consider the following exchange rates: 1. $1.645/BP 2. $0.875/SGD What should be the cross exchange in...

Consider the following exchange rates:

1. $1.645/BP

2. $0.875/SGD What should be the cross exchange in SGD/BP? If the market exchange change is SGD1.92/BP and you have US$100,000 to invest, is that an arbitrage opportunity? If yes, what transaction will you be and what will be the arbitrage profit?

Expert Solution

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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