Remacks. At first it may appear that the solution is nonsensical because it calls for using
Xl2 + X15 = 1.46206 + 5 = 6.46206, or $6,462,060 to buy euros and KDs when the initial dollar
amount is only $5,000,000. Where do the extra dollars come from? What happens in practice is
that the given solution is submitted to the currency dealer as one order, meaning we do not wait
until we accumulate enough currency of a certain type before making a buy.
Remacks. At first it may appear that the solution is nonsensical because it calls for usingXl2 + X15 = 1.46206 + 5 = 6.46206, or $6,462,060 to buy euros and KDs when the initial dollaramount is only $5,000,000. Where do the extra dollars come from? What happens in practice isthat the given solution is submitted to the currency dealer as one order, meaning we do not waituntil we accumulate enough currency of a certain type before making a buy.
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