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valkas [14]
3 years ago
13

120. Assume that the bid rate for Australian dollar $.60 [.9650] while the ask rate is $.61 [.9811] at Bank A. Also assume that

the bid rate for the Australian dollar is $.62 [.9972] while the ask rate is $.625 [1.0052] at Bank B. What would be your profit if you have $100,000 and you execute locational arbitrage
Business
1 answer:
maks197457 [2]3 years ago
8 0

Answer:

$1,639.3

Explanation:

Calculation to determine What would be your profit if you have $100,000 and you execute locational arbitrage

Profit=$100,000-($100,000/$.61)*$.62

Profit = $100,000-(A$163,934.4*$.62)

Profit = $100,000-$101,639,3.

Profit =$1,639.3

Therefore What would be your profit if you have $100,000 and you execute locational arbitrage will be $1,639.3

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vovangra [49]
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3 years ago
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3 years ago
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padilas [110]

Answer:

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8 0
4 years ago
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Answer:

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