Question: What is the complete trading direction to conduct triangular arbitrage in this situation? A. USD ==> AUD ==> HKD B. HKD ==> USD ==> AUD

What is the complete trading direction to conduct triangular arbitrage in this situation?

  • A. USD ==> AUD ==> HKD
  • B. HKD ==> USD ==> AUD
  • C. USD ==> AUD ==> HKD ==> USD
  • D. HKD ==> USD ==> AUD ==> USD
  • E. AUD ==> USD ==> HKD ==> AUD
  • F. AUD ==> HKD ==> USD ==> AUD

If you start with USD 1 million and follow 1 round of arbitrage, how much in USD do you end up with (including your investment of 1 million)

DONT use comma (,) in your answer. simply put, say, 12345678.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Q:

What is the correct complete trading direction for the arbitrage? A. AUD ==> USD ==> AUD ==>JPY B. AUD ==> USD ==> JPY ==> AUD C. AUD ==> JPY==> USD ==> AUD D. AUD ==> JPY==> USD E. JPY==> USD ==>...

Q:

FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942...

Q:

FOR THE WHOLE HOMEWORK, YOU CAN USE 4 NUMBERS AFTER DECIMAL PLACE IN YOUR CALCULATION. Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD:...

Q:

Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: HKD: USD0.12896 Quotation 3: HKD: AUD0.1800 What is the complete trading...

Q:

Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: USD/AUD: 0.74942 Quotation 2: USD/HKD: 0.12896 Quotation 3: AUD/HKD: 0.1800 From quotation 1 and 2,...

Q:

1 )Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: USD/AUD: 0.74942 Quotation 2: USD/HKD: 0.12896 Quotation 3: AUD/HKD: 0.1800 From quotation 1 and...

Q:

Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1 : AUD: USD 0 . 7 4 9 4 2 Quotation 2 : HKD: USD 0 . 1 2 8 9 6 Quotation 3 : HKD: AUD 0 . 1 8 0 0 What...

Q:

Overview Your team works for a renowned FX trading company, Xhi-Trade. The company specializes in trading major currencies such as Australian dollar (AUD), United States dollar (USD), Japanese Yen...

Q:

Use the following 3 quotations for the following 3 questions on triangular arbitrage Quotation 1: AUD: USD0.74942 Quotation 2: USD: JPY100 Quotation 3: AUD: JPY84 Use 4 numbers after decimal place....

Q:

Question 10 1 pts Just before the end of the trading hours on 19th March, 2022. you find the following quotes: AUD2.1381/GBP, USDO.8408/AUD and USD1.8377/GBP in the narket, if you want to implement a...

Q:

You have $20,000 to invest. You want to purchase shares of Xerox at $17.34, Qwest at $8.15, and Liz Claiborne at $44.73. How many shares of each company should you purchase so that your portfolio...

Q:

What other product extensions might Nike consider for its Flyknit technology?

Q:

Question Content Area Materials inventory consists of all products on which work has been started but is not yet finished at the end of the accounting period. True False

Q:

Econ 205 ch 6 Question 21 (0.5 points) If a society has 250 million people over the age of 16, 145 million who are working, and 5 million who are looking for work, with 100 million others neither...