An emergency can anyone assist me to solve this : Donny is an exchange rate...

80.2K

Verified Solution

Question

Accounting

An emergency can anyone assist me to solve this :

Donny is an exchange rate trader based in Kuala Lumpur. He has received this information on the exchange rates quoted by 3 different banks as follows:

Bid
Bank A (MYR/SGD) 3.0680 3.0701
Bank B (USD/SGD) 0.7220 0.7451
Bank C (MYR/USD) 4.2754 4.3456

Assume that he has MYR200,000 to be used as a starting amount to benefit from this pricing discrepancy. Calculate the triangular arbitrage profit. (13 marks)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students