Banquete
Currency pair quotations:
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a. Determine all possible simple arbitrage and explain how you achieve a profit without risk.
GBP/USD
I can buy in UBS at 1,5502 GBP/USDand sell in Bank of America at 1,5505
I can buy in Santander at 1,5495 GBP/USD and sell in Bank of America at 1,5505GBP/USD.
USD/CHF
I can buy in Bank of America at 1,0487 USD/CHF and sell inSantander at 1,0488 USD/CHF
AUD/USD
I can buy in Bank of America at 0,9015 AUD/USD and sell in Santander at 0,9016 AUD/USD
b. Calculate all possible cross rates
BANK OF AMERICABID ASK
EUR/AUD 1,4407 1,4484
From
EUR/USD1,2988 1,3055
AUD/USD 0,9013 0.9015
UBSBID ASK
GBP/JPY 134,7543 134,9030
From
GBP/USD1,5489 1,5502
USD/JPY 87 87,023
SANTANDER
GBP/CHF1,6244 1,6254
From
GBP/USD 1,5489 1,5495USD/CHF 1,0488 1,049
BANK OF AMERICA
CHF/AUD 1,05771,0582
From
USD/CHF 1,0485 1,0487
AUD/USD 0,9013...
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