Problem:
Assume the following information
Value of Canadian dollar in U.S. dollars $.90
Value of New Zealand dollar in U.S. dollars $.30
Value of Canadian dollar in New Zealand dollars NZ$3.02
Given this information , is triangular arbitrage possible? If so, explain the steps that would relect triangular arbitrage, and compute the profit from this strategy if you had $1,000,000 to use.
What market forces would occur to eliminate any further possibilities of triangular arbitrage?