What is the euro-yen cross rate

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Q1. The dollar-euro exchange rate is $1.25 = €1.00 and the dollar-yen exchange rate is ¥100 = $1.00. What is the euro-yen cross rate?

Q2. You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.60 = €1.00 and the dollar-pound exchange rate is quoted at $2.00 = £1.00. If a bank quotes you a cross rate of £1.00 = €1.20 how much money can an astute trader make?

Q3. You have received the following currency quotes from three banks: USD 1.59/SGD, USD 0.65/CHF, and CHF 2.81/SGD. Determine the profit of the triangular arbitrage if you have USD900,000 as the initial capital.

Reference no: EM132930738

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