As a percentage of an arbitrary starting amount, about how large would trans- action costs have...
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As a percentage of an arbitrary starting amount, about how large would trans- action costs have to be to make triangular arbitrage between the exchange rates SSET/S = SFr 1.7223/$, SS/* = $0.009711/¥, and S/SFr = ¥61.740/SFr unprof- itable? As a percentage of an arbitrary starting amount, about how large would trans- action costs have to be to make triangular arbitrage between the exchange rates SSET/S = SFr 1.7223/$, SS/* = $0.009711/¥, and S/SFr = ¥61.740/SFr unprof- itable?
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To determine the transaction costs required to make triangular arbitrage unprofitable we need to calculate the potential profit from executing the tri... View the full answer
Related Book For
Multinational Finance Evaluating Opportunities Costs and Risks of Operations
ISBN: 978-1118270127
5th edition
Authors: Kirt C. Butler
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