Determine and show whether a triangular arbitrage


You are given the following information regarding the spot exchange rates for three currencies

£1=$1.50

C$=$0.75

£1=C$2

Assuming no transaction costs:

a) Determine and show whether a triangular arbitrage opportunity exists

b) Show and explain how you would exploit such opportunity (if any)

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Financial Management: Determine and show whether a triangular arbitrage
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