Available for arbitrage transactions

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A) Assume the following: Euro spot = Euro 0.8115/$1.00; SwF spot = SwF 1.4260/$1.00; and Euro/SF spot = Euro 0.5625/SwF 1.00. Assume you have $1,000,000 available for arbitrage transactions. Show how you can make arbitrage profits at these spot rates. (B) Please define and explain the market actions that will occur to eliminate the arbitrage opportunity.  

Reference no: EM13928155

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