Assume your firm has transferred you to Zurich Switzerland. You work in the triangular arbitrage division. View the following exchange rates. Is an arbitrage opportunity available? If not,= explain why an opportunity does not exist. If so, from the Swiss point of view show how to exploit the opportunity. CHF .8976 = $1.00, $.0130 = INR 1.00, INR 92.7904 = CHF 1

Now say instead of working in Zurich, you were employed in Mumbai, India. How does that change your thinking on the arbitrage?

Answer rating: 100% (QA)

To determine if an arbitrage opportunity exists we need to check if there is a possibility of making a riskfree profit by exploiting discrepancies in ... View the full answer