The current spot rates between the United States, Australia, and Europe are the following: AUD/USD = 1.1558, AUD/EUR = 1.107, and USD/EUR = 0.9917. What % of arbitrage profit is available?

(Hint: Provide your answer at least up to 2 decimal points in % term, i.e., if the answer is 23.45% (=0.2345), then enter "23.45". To get more accurate answer, try to use as many decimal points as possible in middle steps.)

Answer rating: 100% (QA)

1 Calculate the Cross Exchange Rate between AUD and EUR Given spot rates AUDUSD 11558 and USDEUR 099... View the full answer