Aleksander Brzezinski FINC 3377 Triangle Arbitrage: USD $1,000,000 x 0.90145 -> Euro €901,450 x 1.47223 -> CAD C$1,327,141.73 x 0.73725 – > USD $978,435.24 I performed a triangle arbitrage starting in USD, transferred to Euro, then transferred to CAD, and then back to USD. When I started with 1,000,000 dollars and transferred to Euro it became 901,450 euros. Then when I transferred my euro to Canadian Dollar it became 1,327,141.73 CAD. Finally, when I transferred back to USD, I had 978,435.24 dollars. So, I lost money in the arbitrage. USD to Euro I used: https://transferwise.com/us/currency-converter/usd-to-eur-rate Euro to CAD I used: https://www.xe.com/currencyconverter/convert/?Amount=1&From=EUR&To=CAD CAD to USD I used: https://www.rbcbank.com/cgi-bin/tools/cadusd-foreign-exchange- calculator/start.cgi Rectangular Arbitrage (3-month): USD i=2.523%/4 USD $1,000,000 $1,006,307.49 / $683,035.50 S0= 0.90145 F1=0.7585 Euro €901,450 i=-0.41786%/4 €900,508.23 I did a covered interest arbitrage with the USD and the Euro. After performing the arbitrage, I would lose money if I did the arbitrage with the Euro and waited the 3 month. I would lose $323,271.99. I retrieved interest rates from: https://www.global-rates.com/interest- rates/libor/european-euro/euro.aspx I retrieved forward rate from: https://www.barchart.com/forex/quotes/%5EEURUSD/forward-rates
Plagiarism Free Papers
We have a team of professional writers who writer the entire tasks assigned to them afresh. Plagiarizing papers is not an option. Thus, we write assignments from scratch using our unlimited resources and the expertise in research to prepare assignments with references that correspond with accurate in-text citations.
+1 (209) 4875 5892