Assume a new york bank is quoting a spot rate for the


Assume a New York bank is quoting a spot rate for the Japanese yen at JY135/$. Also assume that a bank in London is quoting a spot rate for yen of $.008100/JY. If you had $1,000,000, how could you set up a buy – sell transaction to take advantage of the spread between of the yen exchange rates in the two different markets? What would be your immediate profit?

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Financial Management: Assume a new york bank is quoting a spot rate for the
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