As a Foreign Exchange Trade at Deutsche Bank,one of Your

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The Answer is By means of triangular arbitrage,you can calculate the market quotes for the Australian dollar in terms of yen as ¥78.31-81/A$.These prices can be found by conducting the following trades: For the yen bid price for the Australian dollar,you need to first sell Australian dollars for U.S.dollars and then sell the U.S.dollars for yen.It costs A$1.2924 to buy one U.S.dollar.With U.S.$ you can buy ¥101.37.Therefore,A$1.2944 = ¥101.37,or A4 = ¥78.31.This is the yen bid price for one Australian dollar.The yen ask price for the Australian dollar can be found by first selling yen for US$ and then using the US$ to buy Australian dollars.Given the quotes above,it costs ¥101.85 to buy one US$,which can be sold for A$1.2924 .Thus,A$1.2924 = ¥101.85 or A$ = ¥78.81 This is the yen ask price for the Australian dollar.

As a Foreign Exchange Trade at Deutsche Bank,one of Your

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As a Foreign Exchange Trade at Deutsche Bank,one of Your

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Correct Answer:
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