Question

FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION. Use...

FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION.

Use the following 3 quotations for the following 3 questions on triangular arbitrage

Quotation 1: AUD: USD0.74942

Quotation 2: HKD: USD0.12896

Quotation 3: HKD: AUD0.1800

What is the complete trading direction to conduct triangular arbitrage in this situation?

A. USD ==> AUD ==> HKD

B. HKD ==> USD ==> AUD

C. USD ==> AUD ==> HKD ==> USD

D. HKD ==> USD ==> AUD ==> USD

E. AUD ==> USD ==> HKD ==> AUD

F. AUD ==> HKD ==> USD ==> AUD

0 0
Add a comment Improve this question Transcribed image text
Answer #1

With the help of the equations , we can calculated the profit from the triangular arbitrage,

For example, let is start with $1000,000 USD.

We convert the USD into AUD at the rate of AUD/USD = 0.74942

Upon conversion we get 749420 AUD. Upon converting the AUD into HKD at the rate of HKD/ AUD = 0.18,we get 134895.6 HKD. Now upon converting HKD into USD at the rate of KHD/USD =0.12896, we get $104602.6675 ( 134895.6 HKD / 0.12896)

So, we can make a profit of ($104602.6675 - $1000,000 = 46026.675)

So, the correct option is option C.

Add a comment
Know the answer?
Add Answer to:
FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION. Use...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions
  • Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD:...

    Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: HKD: USD0.12896 Quotation 3: HKD: AUD0.1800 What is the complete trading direction to conduct triangular arbitrage in this situation? A. HKD ==> USD ==> AUD ==> USD B. AUD ==> USD ==> HKD ==> AUD

  • Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD:...

    Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: HKD: USD0.12896 Quotation 3: HKD: AUD0.1800 If you start with USD 1 million and follow 1 round of arbitrage, how much in USD do you end up with (including your investment of 1 million)

  • Click to see additional instructions Use the following 3 quotations for the following 3 questions on...

    Click to see additional instructions Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUDUSDO.74942 Quotation 2: USD: JPY100 Quotation 3: AUD JPY84 Use 4 numbers after decimal place. From the first 2 quotations, what is the crossed rate for AUD1 in JPY

  • Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD:...

    Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: USD: JPY100 Quotation 3: AUD: JPY84 Use 4 numbers after decimal place. 1. If you start with JPY 100,000,000 , what is the percentage rate of return after 1 round of arbitrage? dont put percentage sign in your answer. If you answer is 5.67%, simply put 5.67

  • sint: Use STAEC Structural and Site Plans Homework 2: Contours, Land Spring 2018 blopes, Bearings &...

    sint: Use STAEC Structural and Site Plans Homework 2: Contours, Land Spring 2018 blopes, Bearings & Ground Slope Due: February 22, 2018 Bearings Name: Section: 12 [12 polnts) The instructions br to scalel The elevation at one your calculations in the space provided ons below apply to parts (a), (b), and (c) of this question s comprised of flat rectangular slab(s) as depicted below. Ihe dlibat ower elevations. For each part, complete the following tasks, showing al (1) Re draw...

  • Calculation Practice Compute the answers to Questions 4 - 6 without the use of statistical software....

    Calculation Practice Compute the answers to Questions 4 - 6 without the use of statistical software. Be sure to supply all the intermediate information asked for by the question. To aid you, SS has been supplied. All three calculation practice questions will make use of the following dataset: Participant Factor A Lvll Factor A Lvl 2 Factor A Lvl 3 Factor B Lvl 1 Factor B Lvl 2 14 5. For this problem continue to ignore the levels of Factor....

  • Remember: You cannot give a decimal of a drop. You need to round it to the nearest whole number. All IV pumps use whole...

    Remember: You cannot give a decimal of a drop. You need to round it to the nearest whole number. All IV pumps use whole numbers to deliver ml/hr so your answer should be a whole number unless otherwise specified. PLEASE HELP WITH 16 NURSING QUESTIONS. THANK YOU. GOD BLESS YOU!!! 1. A client’s intravenous fluids are infusing at the rate of 30 gtts/min. How many mL/h is the client receiving? 2. A client is prescribed 500 mL of intravenous fluid...

  • Need help on C++ (User-Defined Function) Format all numerical decimal values with 4 digits after ...

    need help on C++ (User-Defined Function) Format all numerical decimal values with 4 digits after the decimal point. Process and sample run: a) Function 1: A void function that uses parameters passed by reference representing the name of a data file to read data from, amount of principal in an investment portfolio, interest rate (any number such as 5.5 for 5.5% interest rate, etc.) , number of times the interest is compounded, and the number of years the money is...

  • DIRECTIONS: Make sure your responses are neat and readable. You must show me your calculation in...

    DIRECTIONS: Make sure your responses are neat and readable. You must show me your calculation in a separate piece of paper. Homework that is difficult to grade due to messiness will be returned ungraded. If you would like to get full credit, do not forget to attach the Excel output. The number of hours 10 students spent studying for a test and their scores on that test is represented in the table below. 0 2 4 5 5 Hours spent...

  • NAME Statistics in Psychological Research Homework 4 Your homework must consist entirely of your own work....

    NAME Statistics in Psychological Research Homework 4 Your homework must consist entirely of your own work. You will need to show your work for calculations in order to receive full credit. Showing your calculations will also allow us to award partial credit due to minor calculation errors. PLEASE BE SURE TO TYPE THE MAJOR STEPS FOR FULL CREDIT AND ROUND TO 2 DECIMAL PLACES. 1. State the null and research hypothesis for each research scenario. [3pts, 1pts each] a. A...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT