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    Determining a Profitable Arbitrage Situation

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    Suppose the euro is quoted at 0.7064-80 in London and the pound sterling is quoted at 1.6244-59 in Frankfurt. How would I find out if this was a profitable arbitrage situation or not? Please describe it.

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    https://brainmass.com/business/arbitrage-pricing-theory/determining-a-profitable-arbitrage-situation-102957

    Solution Summary

    This solution provides a brief description of whether an arbitrage situation is profitable.

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