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As a foreign exchange trader, you see the following quotes for Canadian dollars (CAD), U.S. dollars (USD), and Mexican pesos (MXN): USD0.7947/CAD ; MXN6.4390/CAD; MXN8.7535/USD.
As a foreign exchange trader, you see the following quotes for Canadian dollars (CAD), U.S. dollars (USD), and Mexican pesos (MXN): USD0.7947/CAD ; MXN6.4390/CAD; MXN8.7535/USD. How much arbitrage profit does one earns instantaneously by implementing the right arbitrage strategy?
0% 8.036% 4.027% -4.027% -8.036%
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