Concept of triangular arbitrage


"The Market for Foreign Exchange" Please respond to the following:

A) Banks find it necessary to accommodate their clients' needs to buy or sell FX forward, in many instances for hedging purposes. Discuss how a bank may mitigate the currency exposure it has created for itself by accommodating the clients' forward transaction.

B) Create a list of three best practices for reading spot market quotations, deriving cross-rate quotations, and leveraging the concept of triangular arbitrage as a means of ensuring market efficiency.

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Operation Management: Concept of triangular arbitrage
Reference No:- TGS0515594

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