I) A direct quotation is given as USD/CHF 1.1350/55 1. What are the two currencies involved? 2.

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I) A direct quotation is given as USD/CHF 1.1350/55
1. What are the two currencies involved?

2. Is the rate being stated as USD per CHF or CHF per USD?

3. At what rate will the bank be giving the quote to buy USD?

4. At what rate will it sell?

5. How much is the bid-ask spread in points?

II) In London a dealer quotes: GBP/JPY Spot: 3.5250/55

GBP/JPY Spor: 180.80/181.30

1. What do you expect CHF/JPY rate to be in Geneva?

2. Suppose that in Geneva you get a quote CHF/JPY Spot 51.1530/51.3550, is there an arbitrage opportgity? If so, how?

Related Book For answer-question

International Economics

ISBN: 978-0073523170

15th edition

Authors: Thomas A. Pugel

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Posted Date: May 22, 2023 03:34 AM

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I) A direct quotation is given as USD/CHF 1.1350/55 1. What are the two currencies involved? 2.

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Expert Answer:

I USDCHF 1135055 Currencies Involved USD US Dollar CHF Swiss Franc Rate Stated The rate is being sta... View the full answer

International Economics

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