Remy has observed different exchange rates located in Melbourne and Adelaide. The bank in Melbourne offers the
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Remy has observed different exchange rates located in Melbourne and Adelaide. The bank in Melbourne offers the bid-ask rate for a US dollar at AUD1.213-1.2774 whereas the bid-ask rate for a US dollar in Adelaide is AUD1.0714-1.1904. If Remy has 310,000 Australian dollars, how much profit can he make from the price differentials?
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Financial Institutions Management A Risk Management Approach
ISBN: 978-0071051590
8th edition
Authors: Marcia Cornett, Patricia McGraw, Anthony Saunders
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