Question
1 unit of Currency A costs 1.5 units of Currency B, 1 unit of Currency B costs 0.65 units of Currency C, and 1 unit
1 unit of Currency A costs 1.5 units of Currency B, 1 unit of Currency B costs 0.65 units of Currency C, and 1 unit of Currency C costs 0.99 units of Currency A. Assume that you are starting out with 1,000,000 units of Currency A and that there are no transaction costs. How much money will you make in one set of triangular arbitrage transactions? Round to the nearest unit of Currency A.
Answer: 36001
Please show work
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
