Calculation
Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes:
- Swiss Franc/dollar = SFr1.4971/$
- Australian dollar/dollar = A$1.8215/$
- Australian dollar/Swiss franc = A$1.1440/SFr
Does Doug have an arbitrage opportunity based on these quotes? Explain how to conduct the arbitrage. Calculate the rate of return. (5 points)
