How could you profit from the exchange rates


Problem:

Suppose £1 = $2.50 in New York, $1 = ¥125.00 in Tokyo, and £1 = ¥250.00 in London. If you begin by holding ¥100, how could you profit from these exchange rates? Ignoring transaction costs, what is your arbitrage profit per 100 yen.

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Finance Basics: How could you profit from the exchange rates
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