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Essay's paper info

Topic:	Business
Number of pages / Number of words:	2 / 357

Essay's paper body

Date: Nov. 14th

Exchange Rate Behavior

Questions

1. Triangular Arbitrage:

? = $1.596

A$ = $0.70

Cross exchange rate: ? = A$2.28

Cross interest rate should be: ? = $1.596/$0.70 = A$ 2.28

Triangular arbitrage capitalizes on discrepancies in cross exchange rates.

There are no discrepancies in cross exchange rates...

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