The fact that we can derive the British pound/Israeli shekel exchange rate, say, from the dollar/pound rate and the dollar/s

Question

3 years ago

15

The fact that we can derive the British pound/Israeli shekel exchange rate, say, from the dollar/pound rate and the dollar/s

hekel rate follows from ruling out a potentially profitable arbitrage strategy known as triangular arbitrage. As an example, suppose that the British pound price of a zloty was below the British pound price of a dollar times the dollar price of a zloty, as depicted by the hypothetical data in the following table.
Exchange rate Value
British pound price of a zloty 4.0
British pound Vice of a dollar 1.60
U.S. dollar price of a zloty 5.00

Using $100 to purchase the Polish currency directly would obtain ___________ zlotys.

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1 answer:

AleksAgata [21] · Answer 1 · 2022-09-10T07:52:52+03:00

AleksAgata [21]3 years ago

3 0

Answer:

The answer is "20".

Explanation:

In this question the given exchange rate for US dollar to a Zloty=5

for $\$100$ we get $\frac{ 100}{5}=20 \ \ Zloty$

The fact that we can derive the British pound​/Israeli shekel exchange​ rate, say, from the ​dollar/pound rate and the ​dollar/s

The fact that we can derive the British pound/Israeli shekel exchange rate, say, from the dollar/pound rate and the dollar/s