Arbitrage Profits for Two Banks
Q. Following are provided by two banks: Bank A: 2786 Pesos / US$ Bank B: 2783 Pesos / US$ A. If we assume no transaction costs, there is an opportunity for arbitrage. If an arbitrageur has US $20,000 how can she make profit and how much can she make? Please show your working out. B. If there is 1% transaction cost fo