Problem
Suppose you leave Canada with 1000 CAD and travel first to France, convert your money to Euros (but spend nothing), then to Switzerland where you convert your money to SWF, then to London, where you convert to GBP. In none of these countries do you spend money. Then you come home and convert your money to the local currency at each stop (From London to Switzerland, from Switzerland to Paris, then from Paris to Canada.) 1.4310-60 CAD/EURO 1.2015-40 SWF/EURO 0.9210-50 GBP/SWF How much money did you lose by converting your money back and forth? Who made this money? Did the person who made the money take any risk? What was that risk?