As a foreign exchange trader, you see the following quotes for Canadian dollars (CAD), U.S. dollars (USD),
Question:
As a foreign exchange trader, you see the following quotes for Canadian dollars (CAD), U.S. dollars (USD), and Mexican pesos (MXN): USD0.7047/ CAD, MXN6.4390/CAD, and MXN8.7535/USD. Is there an arbitrage opportunity, and if so, how would you exploit it?
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The direct quote for the crossrate of MXN64390CAD should equal the ...View the full answer
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Related Book For 
International Financial Management
ISBN: 978-0132162760
2nd edition
Authors: Geert Bekaert, Robert J. Hodrick
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