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International Cross-exchange rates

A dealer in Australia quotes A$1.7430-40/$,
A dealer in Paris quotes $0.8610-20/euro.
A dealer in Germany quotes euro 0.6667-76/A$.

What should the German dealer quote to prevent any arbitrage?

Solution Preview

Hello,

Assuming you are asking what the German dealer should quote Euros per USD.

The formula below is how you find the cross ...

Solution Summary

The formula below is how you find the cross rates between currencies.

$2.19