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1. Assume the following information: Value of the Canadian dollar in U.S. dollars: $0.90 Value of New Zealand dollar in U.S. dollars: $0.30 Value of

1. Assume the following information: Value of the Canadian dollar in U.S. dollars: $0.90 Value of New Zealand dollar in U.S. dollars: $0.30 Value of the Canadian dollar in New Zealand dollars NZ $2.80 Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had $1 million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage?

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