Describe the similarities and the differences of exchange rate/cross rate arbitrage and spot rate/forward rate arbitrage.
Answer to relevant QuestionsWhat is meant when it is said that the U.S. dollar is strengthening? How would it impact your vacation abroad and foreign visitors to the United States?Explain how a country’s import trade limitations and tariffs influence MNC’s foreign direct investment. Over the past decade, China has acquired hundreds of billions of U.S. dollars because of the trade imbalance between the two countries. They have used many of these dollars to purchase U.S. Treasury bonds. What would ...Convert each of the following direct quotes to dollar indirect quotes:a. 1 Danish krone = $0.170b. 1 Indian rupee = $0.0184c. 1 Israeli shekel = $0.2751Given these two exchange rates, $1 = 0.9952 Australian dollars and $1 = £0.6476, compute the cross rate between the Australian dollars and the pound. State this exchange rate in Australian dollars and in pounds.
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