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  • Activity 3 in Triangular Arbitrage

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    kateangel elleso
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    The document describes a scenario for an arbitrage opportunity involving currencies between New York, Germany, and Canada. It lists the exchange rates of US Dollars, Euros, and Canadian Dollars in each location. For example, in New York the Euro is worth $1.10 US Dollars and the Canadian Dollar is worth $0.75 US Dollars. The task is to illustrate how to buy and sell currencies between locations to make a profit through arbitrage.

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    Original Title

    ACTIVITY 3 IN TRIANGULAR ARBITRAGE

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    The document describes a scenario for an arbitrage opportunity involving currencies between New York, Germany, and Canada. It lists the exchange rates of US Dollars, Euros, and Canadian Dollars in each location. For example, in New York the Euro is worth $1.10 US Dollars and the Canadian Dollar is worth $0.75 US Dollars. The task is to illustrate how to buy and sell currencies between locations to make a profit through arbitrage.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    14 views2 pages

    Activity 3 in Triangular Arbitrage

    Uploaded by

    kateangel elleso
    The document describes a scenario for an arbitrage opportunity involving currencies between New York, Germany, and Canada. It lists the exchange rates of US Dollars, Euros, and Canadian Dollars in each location. For example, in New York the Euro is worth $1.10 US Dollars and the Canadian Dollar is worth $0.75 US Dollars. The task is to illustrate how to buy and sell currencies between locations to make a profit through arbitrage.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    BATERNA, ALVIN

    BATION, JASHMINE
    ELLESO, KATE ANGEL
    HERNANE, SHIELA MAE
    TRIMIDAL, PRECY JOY

    Activity 3: Arbitrager Na Ko!


    Directions:  Given the following scenario, with your group illustrate one way wherein you can gain in
    arbitraging (where will you buy first at what price, then where are you going to sell at what price then
    how much did you gain?):
    A.  In New York:  the German Euro is about $1.10 US Dollar
    The Canadian dollar is 0.75 to a US Dollar
    B.  In Germany:  US Dollar is $1.20 per German  Euro
    Canadian Dollar is 0.90  German Euro
    C.  In Canada: US Dollars are worth 0.80 Canadian Dollar
    German Euro is worth 0.85 Canadian Dollar

    NEW YORK
    USD

    NO GAIN OR LOSS

    CAS/USD USD/EUR
    1.10
    /0.75

    EUR
    CAD
    EUR/CAD

    0.68
    GERMANY USD

    NO GAIN OR LOSS

    USD/EUR
    CAD/ USD
    1.20
    0.75

    CAD
    EUR/CAD EUR

    /0.90

    CANADA

    NO GAIN OR LOSS

    CAD

    CAD/USD
    EUR/CAS
    0.80
    /0.85

    EUR USD
    USD/EUR

    1.0625

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