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A trader at Deutsche Bank notices that Credit Lyonnais is buying/selling dollars at (/$) 0.6783 and Barclays is buying/selling British pounds at ($/) 1.9712. He
A trader at Deutsche Bank notices that Credit Lyonnais is buying/selling dollars at (/$) 0.6783 and Barclays is buying/selling British pounds at ($/) 1.9712. He next finds that Credit Agricole is making a direct market between the euro and the pound at (/) 1.3310. How can this Deutsche Bank trader make a profit with $5,000,000?
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