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

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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

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Answer 1

Answer #1

The rate of return is 12.08

Dear student, please see the detailed solution in the image below

solution Their exist a triangular arbitrage in the given quotations Starting with JPY 100,000,000 7 ob 0 Convent JPY to urd i o convert uso to AUD I AND = 0.749YR USD 1 USD = L AND 0-74942 * 3 р с дор : 0.74942 1384 365.242 AUD ③ Convent Aud to JPY I

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Answer 2

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