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2. Triangular Arbitrage Assume the following information: Value of British pound in U.S. dollar Value of New Zealand dollar in U.S. dollar Value of British

2. Triangular Arbitrage Assume the following information: Value of British pound in U.S. dollar Value of New Zealand dollar in U.S. dollar Value of British pound in New Zealand dollar Quoted Price $1.30 $.65 NZ$2.02 Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this arbitrage if you had $1 million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage? (1 point)

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