Proceedings of the 2023 International Conference on Management Research and Economic Development
Series Vol. 19
, 13 September 2023
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The Arbitrage Outcome in the Triangular and Quadrangular Arbitrage Paths
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Advances in Economics, Management and Political Sciences, Vol. 19,
Published 13 September 2023. © 2023 The Author(s). Published by EWA
This article is an open access article distributed under the terms and
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Citation Wenyang Lyu. The Arbitrage Outcome in the Triangular and Quadrangular Arbitrage Paths. AEMPS (2023) Vol. 19: 34-39. DOI: 10.54254/2754-1169/19/20230115.
For a long time, both nationally and internationally, RMB hedging has been a contentious issue. The study and analysis of triangle and quadrilateral hedging in 30 countries are the focus of this article. In addition, they are classified into three groups: industrialized nations, developing countries, and backward countries, with the 30 countries that were chosen falling into each category. On the other hand, triangular arbitrage is an arbitrage that benefits from cross-exchange rate price movements. In contrast, quadrilateral arbitrage follows in the footsteps of those above but involves going via two more countries. Moreover, the data analysis for triangular and quadrangle arbitrage uses the total average, average, maximum, and minimum of favorable spreads, per the study below. From all of this, it could be seen that square hedging frequently has a broader spread or more losses, while triangular hedging frequently has a narrower spread.
arbitrage, RMB, triangular hedging, and quadrilateral hedging
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The datasets used and/or analyzed during the current study will be available
from the authors upon reasonable request.
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- Volume Title
- Proceedings of the 2023 International Conference on Management Research and Economic Development
- ISBN (Print)
- ISBN (Online)
- Published Date
- 13 September 2023
- Advances in Economics, Management and Political Sciences
- ISSN (Print)
- ISSN (Online)
- © 2023 The Author(s)
- Open Access
- This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license, which
permits unrestricted use, distribution, and reproduction in any medium,
provided the original work is properly cited