What yeneuro price will eliminate the triangular arbitrage, Financial Management

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What yeneuro price will eliminate the triangular arbitrage

Doug Bernard specializes in cross-rate arbitrage. He notices the following quotes:

1. Credit Lyonnais: Yen / US dollar = JPY 111.0000 / USD

2. Barclays: US dollar / euro = USD 1.2200/ EUR

3. Credit Agricole: Yen / EUR = JPY 137.0000 / EUR

Ignoring transaction costs, show how much Doug Bernard can make a triangular arbitrage profit by trading at these prices. Assume that he has $1 million available to conduct the arbitrage and calculate the arbitrage profit in both $ and percentage terms, showing clearly the steps of the arbitrage.

What yen/euro price will eliminate the triangular arbitrage opportunity?

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