Assume the following bid and ask rates of the pound for two banks as shown below: Bid Ask Sampath Bank in Sri Lanka Rs. 120.15 Rs. 121.42 ANZ in Australia Rs. 121.58 Rs. 121.82 What is the arbitrage profit per Australian dollar? A. Rs. 0.16. B. Rs. 0.24. C. Rs. 1.27. D. Rs. 1.43. E. There is no arbitrage opportunity.

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Assume the following bid and ask rates of the pound for two banks as shown below: Bid Ask Sampath Bank in Sri Lanka Rs

Finance Sep 08, 2020

Assume the following bid and ask rates of the pound for two banks as shown below:

	Bid	Ask
Sampath Bank in Sri Lanka	Rs. 120.15	Rs. 121.42
ANZ in Australia	Rs. 121.58	Rs. 121.82

What is the arbitrage profit per Australian dollar?

	A.	Rs. 0.16.
	B.	Rs. 0.24.
	C.	Rs. 1.27.
	D.	Rs. 1.43.
	E.	There is no arbitrage opportunity.

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