Question: The table below shows the bid and offer (ask) exchange rates quoted in London: (a) Calculate the bid and offer exchange rates missing in the

The table below shows the bid and offer (ask) exchange rates quoted in London:

The table below shows the bid and offer (ask) exchange rates quoted

(a) Calculate the bid and offer exchange rates missing in the table. (6 marks)

(b) How much Swiss francs (CHF) can I buy with my 1 million euros? (3 marks)

(c) Suppose, bid and offer for USDCHF in Tokyo are 0.887 and 0.8875. How much arbitrage profit can a Japanese investor with 1 million yens make? Hint: the transactions of this Japanese investor involve buying and selling currencies in Tokyo and London. (5 marks)

EURUSD USDCHF USDJPY USDRUB USDTRY EURTRY RUBTRY Bid ? 0.898 110 ? 8.503 10.3141 0.118097222 Offer 1.2135 0.8985 110.1 ? 8.511 ? 0.11837274

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