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5. How large must transaction costs in the FX market be such that...
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How large must transaction costs in the FX market be such that an arbitrage opportunity, given these spot rates, is no longer possible?
USD1.351/GBP,
EUR1.19/GBP
USDO.88/EUR
O a. 7.4933% per transaction
O b. 4.0701% per transaction
O c. 3.4233% per transaction
O d. 8.1401% per transaction
O e. None of the options in this question are correct.
5
Answer & Explanation
Solved by verified expertAnswered by Jimmywaws on coursehero.com
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