The New Zealand dollar to U.S. dollar exchange rate is 1.38, and the British pound to U.S.
Question:
The New Zealand dollar to U.S. dollar exchange rate is 1.38, and the British pound to U.S. dollar exchange rate is 0.65. If you find that the British pound to New Zealand dollar is trading at 0.5, what would be the riskless profit per U.S. dollar invested?
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Step by Step Answer:
To find the riskless profit per US dollar invested we can use the concept of triangular arbitrage Tr...View the full answer
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Related Book For 
The Economics Of Money Banking And Financial Markets
ISBN: 9781292268859
12th Global Edition
Authors: Frederic S. Mishkin
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