USD:EUR 1.39 1.395 JPY:USD 82.9 82.945 EUR:JPY 115 115.1 Given the quotes, is there an opportunity and if John invests $5,000,000, is there an expected profit? A. No. B. Yes, a profit of $5,500. C. Yes, a profit of $6,121.
Ok I must hav forgotten the whole up the bid down the ask thing, because I just can’t see how they got the answer.
We have EUR/ USD, JPY/EUR, and USD/ JPY, so going USD to EUR to JPY to USD we should be using the bid each time so 1/1.39 x 115 x 1/ 82.9 right? Or have I completely forgotten how to do these?