Suppose £1=$2.411 in NewYork, $1 = €1.050 in Paris, and £1 = €2.50 in London. a) (7) If you begin by holding £1, how could you profit from these exchange rates? (Please report your answer with 3 decimal digits e. g. 0.001)b) (3) Ignoring transaction costs, what is your arbitrage profit per pound initially traded?
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Suppose £1=$2.411 in NewYork, $1 = €1.050 in Paris, and £1 = €2.50 in London. a) (7) If you begin by...
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