Sf the currency you have sf 90 159 07550 120045 step

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9. Great Pyramids. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars and Saudi riyals. He has $1,000,000 to work with so he gathers the following quotes: - Citibank quotes U.S. dollar per Libyan dinar: $1.9324/LYD - National Bank of Kuwait quotes Saudi riyal per Libyan dinar: SAR1.9405/LYD - Barclay quotes U.S. dollar per Saudi riyal $0.2667/SAR Step 1: Calculate the implied cross rate LYD/$ = (LYD/SAR) x (SAR/$) = 1.9405 x 0.2667 = 0.5175 Step 2: Compare the implied cross rate with the other actual exchange rate
Sell $ to buy SAR: 1,000,000 : 0.2667 = SAR 3,749,531 Sell SAR to buy LYD: SAR 3,749,531 : 1.9405 = LYD 1,932,250 Sell LYD to buy $: LYD 1,932,250 x 1.9324 = $ 3,733,880 Gain: $ 2,733,880 Problem 5: Arbitrage Strategy #1Initial investment1,000,000.00$ Buy euros from Barclays (at the ask rate)€ 1,320,132.01Sell euros to Citibank (at the bid rate)996,831.68$ Arbitrage profit (loss)(3,168.32)$ Arbitrage Strategy #2Initial investment1,000,000.00$ Buy euros from Citibank (at the ask rate)€ 1,322,576.38Sell euros to Barclays (at the bid rate)997,883.88$ Arbitrage profit (loss)(2,116.12)$ The arbitrager cannot make a profit using these quotes.$(the currency you have)SARLYDLYD/$ 1.9324

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