Ask Question
15 May, 15:42

Royal bank quotes a value for the japanese yen (¥) of $0.007, and a value for the canadian dollar (c$) of $0.821. the cross exchange rate quoted by the bank for the canadian dollar is ¥118.00. you have $500,000 to conduct triangular arbitrage. how much will you end up with if you conduct triangular arbitrage?

+3
Answers (1)
  1. 15 May, 16:09
    0
    If you have $500,000 and the yen exchange rate is. 007, you would have

    500,000/.007 = 71,428,571.43 yen

    Then, if the exchange rate to Canadian dollars is 118 then you would have

    71428571.43/118 = 605,326.88 dollars

    Then if the exchange rate back to US dollars is. 821, you would end up with

    605,326.88 /.821 = $737,304.36
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Royal bank quotes a value for the japanese yen (¥) of $0.007, and a value for the canadian dollar (c$) of $0.821. the cross exchange rate ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers