Question

Suppose the following bilateral spot exchange rates are being quoted for the Danish krone (DK

  • K , the US dollar (US$) and the euro (€): US$/€ = 1.5 DKK/€ = 7.0 DKK/$ = 5.0 If you start with 100€, the most you could end up with in a single round of triangular arbitrage would be...
A €107.14
B €750
C €150.5
D €103.1
E €501
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