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  3. 6. as a foreign exchange trader, you see the follo

6. As a foreign exchange trader, you see the following quotes for Euro, USD and...

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6. As a foreign exchange trader, you see the following quotes for Euro, USD and Pound: $ 1.5532/ 1.1042/E 0.7821/$ the Is there an arbitrage opportunity, and if so, how would you exploit it? (3 marks) a) Draw the triangular diagram with currencies, and indicate which direction to move around. b) You can start with any currency but start using 1,000 units of the currency you choose. c) Show your working step-by-step, and present the final result with a rate of return in %

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