Impact on foreign exchange markets
Question: What would be the impact on foreign exchange markets if Congress takes too long to raise the US debt ceiling and some of the debt is in danger of default?
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a. Is there a profitable arbitrage situation? Describe it. b. Compute the percentage bid-ask spreads on the pound and euro.
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What would be the impact on foreign exchange markets if Congress takes too long to raise the US debt ceiling and some of the debt is in danger of default?
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