Profit from triangular arbitrage


The Pound spot rate is $1.56. The $/Euro spot rate is $1.25. A bank quotes the Pound/Euro cross-rate as Pound 0.94/Euro. If triangular arbitrage is possible and you have $1,000,000, what is the profit from triangular arbitrage?

Solution Preview :

Prepared by a verified Expert
Finance Basics: Profit from triangular arbitrage
Reference No:- TGS0680308

Now Priced at $5 (50% Discount)

Recommended (96%)

Rated (4.8/5)