Given the following quotations at two banks $US Bank A Bank B Bid rate for $HK 0 1285 0 1279 Ask rate for $HK 0 1292 0 1284 Is there an arbitrage opportunity If so, how much profit could you make starting with $US1M ...

Buy HK at Bank B at the exchange r ...

Given the following quotations at two banks: $US Bank A Bank B Bid rate for $HK 0.1285

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Given the following quotations at two banks:

	$US
	Bank A	Bank B
Bid rate for $HK	0.1285	0.1279
Ask rate for $HK	0.1292	0.1284

Is there an arbitrage opportunity? If so, how much profit could you make starting with $US1M?

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Related Book For answer-question

Exchange Rates and International Finance

ISBN: 978-0273786047

6th edition

Authors: Laurence Copeland

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Question Posted: Apr 03, 2019 11:47 AM

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Given the following quotations at two banks: $US Bank A Bank B Bid rate for $HK 0.1285

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Exchange Rates and International Finance

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