When you change these pounds into Hong Kong dollars in the London market, you get (11.5715) *12.3862 Hong Kong dollars (you always get the less number).
Therefore, 1 USD is equal to (1 .5715) *12.3862 HKD, that is,1USD = 7.88 18 HKD.
This is the buying rate of Hong Kong dollars. On the other hand, you can calculate the selling price of Hong Kong dollars:
Sell HK$ in new york market to get GBP, and then use GBP to buy USD in new york market to get 1 USD. The required HKD is:
1 2.3872/1.5705 = 7.8874, that is,1USD = 7.8874 Hong Kong dollars.
Therefore, the cross exchange rate calculated according to new york market and London market is: USD 65,438+0 = HK$ 7.85438 +08 ~ 74.
In this way, you can arbitrage, buy dollars and sell Hong Kong dollars in the Hong Kong market at 7.7883, and sell dollars and buy back Hong Kong dollars at the cross exchange rate of 7.88 18, thus benefiting.