European euro per problem 616 direct quotation on the

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European euro ($ per )
Problem 6.16 Direct Quotation on the Dollar
Problem 6.17 Mexican Peso - European Euro Cross RateAssumptionsExchange rateMexican peso, pesos/dollar (Ps/$)12.45 0.7550 Calculated cross rate, pesos/euro16.4901 0.0606 Calculate the cross rate between the Mexican peso (Ps) and the euro (€ ) from the following two spot rates: Ps12.45/$ and € 0.7550/$. European euro, euros/dollar (€/$)pesos/euro = (Ps/$) / (€/$)or equivalently, euros/peso (€/Ps)
Problem 6.18 Pura VidaAssumptionsExchange rateCosta Rican colón, colónes/dollar (₡/$)500.29 Canadian dollar, Canadian dollars/dollar (C$/$)1.0200 Calculated cross rate, pesos/euro490.4804 or equivalently, Canadian dollars/colón (C$/₡)0.0020 Calculate the cross rate between the Costa Rican colón (₡) and the Canadian dollar (C$ ) from the following two spot rates: ₡500.29/$ and C$1.02/$. Colónes/Canadian dollar = (₡/$) / (C$/$)
Problem 6.19 Around the HornCitibank quotes U.S. dollar per pound:$1.5900/£National Westminster quotes euros per pound:€1.2000/£Deutschebank quotes U.S. dollar per euro:$0.7550/€AssumptionsExchange rateCitibank quote: US$/pound ($/£)1.5900 1.2000 0.7550 Initial investment$ 1,000,000.00 Path #1: US$ to euros to pounds to US$Start with US$$ 1,000,000.00 Convert to euros at Deutschebank quote€ 1,324,503.31Convert euros to pounds at NatWest quote£1,103,752.76Convert pounds to US$ at Citibank quote$ 1,754,966.89 Arbitrage gain (loss)$ 754,966.89 Path #2: US$ to pounds to euros to US$Start with US$$ 1,000,000.00 Convert to pounds at Citibank quote£628,930.82Convert pounds to euros at NatWest quote€ 754,716.98Convert euros to US$ at Deutschebank quote$ 569,811.32 Arbitrage gain (loss)$ (430,188.68)Triangular arbitrage path #1 yields a positive profit.Around the horn. Assuming the following quotes, calculate how a market trader at Citibank with $1,000,000 can make an intermarket arbitrage profit.:National Westminster quote: euros/pound (€/£)Deutschebank quote: US$/euro ($/€)
Problem 6.20 Great PyramidsCitibank quotes U.S. dollar per Libyan dinar:$1.9324/LYDNational Bank of Kuwait quotes Saudi riyal per Libyan dinar:SAR 1.9405/LYDBarclay quotes U.S. dollar per Saudi riyal:$0.2667/SARAssumptionsExchange rateCitibank quote: US$/dinar ($/LYD)1.9324 National Bank of Kuwait quote: riyal per dinar (SAR/LYD)1.9405 0.2667 Initial investment$ 1,000,000.00 Path #1: US$ to riyals to dinars to US$Start with US$$ 1,000,000.00 Convert to riyals at Barclay quoteSAR 3,749,953.13Convert riyals to dinars at NatBank of Kuwait quoteLYD 1,932,467.47Convert dinars to US$ at Citibank quote$ 3,734,300.14 Arbitrage gain (loss)$ 2,734,300.14 Path #2: US$ to dinars to riyals to US$

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