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how can foreign-exchange arbitrages profit from these exchange rates?Explain how foreign-exchange arbitrage results in the same dollar/pound exchange rate in New York and London.
人气:171 ℃ 时间:2020-03-26 15:19:08
解答
Buy Dollars with Pounds in London, and use the Dollars to buy pounds in New York.
For example, use 1000 pounds to buy Dollars in London, you get 1710 US Dollars;
use 1710 US Dollars to buy Pounds in New York, you get 1011.83 Pounds,
you make a profit of 11.83 Pounds.
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