Question: what is your profit from exploding the opportunity once in $ ? You have $15,000 and observe the following exchange rates: Bid Ask $1.03 $1.04

what is your profit from exploding the opportunity once in $ ?

You have $15,000 and observe the following exchange rates: Bid Ask $1.03 $1.04 Exchange rate Value of euro in U.S. dollars Value of Swiss franc in U.S. dollars Value of euro in Swiss francs $0.98 $0.99 CHF1 CHF1.01 Part 1 | Attempt 1/5 for 10 pts. Is there an arbitrage opportunity? If so, what should you do to exploit it? No Yes: buy Swiss francs with euros Yes: buy euros with Swiss francs Correct Value of euro in Swiss franc Value of euro in $ Value of Swiss franc in $ $1.04 / $0.99 / CHF = - CHF1.051I/ Since the quoted cross exchange rate is lower than this calculated rate, the quote is cheap: you should buy euros with Swiss francs. Part 2 | Attempt 1/10 for 10 pts. What is your profit from exploiting the opportunity once (in $)

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Id probably just get more upset. Its bett er to just drop it.