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A currency speculator at Morgan Stanley in New York observes the following forex quotes: Which of the following Triangular Arbitrage strategies (in that order) will
A currency speculator at Morgan Stanley in New York observes the following forex quotes: Which of the following Triangular Arbitrage strategies (in that order) will yield a profit? 1. Sell $ and buy from Credit Suisse ? Sell and buy CDN from BNP Paribas? Sell CDN and buy $ from J.P. Morgan Chase. 2. Buy $ and Sell to Credit Suisse ? Buy and Sell CDN to BNP Paribas? Buy CDN and Sell $ to J.P. Morgan Chase. 3. Buy CDN and sell \$ to J.P. Morgan Chase ? Buy and sell CDN to BNP Paribas ? Sell and buy $ from Credit Suisse. 4. All of the above
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