Dealer quoted bid-offer price of 235.90 - 235.92 JPY/CAD
the implied rates by interbank are 235.8603 - 235.9422 JPY/CAD is there an arbitrage profit?
No. Dealer bid < interbank ask & dealer ask > interbank bid --> ask is greater than bid in any situation for this one…I’ve been reading a lot (long day), so I could be missing something, though.
Looks to be no arbitrage from my view, either.
You guys are correct!~
must the bid from the dealer or interbank always be lower?
for example:
Dealer: Bid - ask
235.80 - 235.90
Bank: Bid - ask
235.85 - 235.95
Yes, otherwise I could buy from the implied interbank or delear @ the ask, and sell the other @ the bid.
Dealer
Bid Offer
100 101.5
Interbank
Bid Offer
99.95 99.99
I could buy from the Interbank at 99.99 and then sell to the dealer for 100