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Posted on Sep 07, 2024

Assume that there is no transaction cost and you observe the following quotation: 1. HKD: USD 0.1250 2. USD: JPY 116.20 3. JPY: HKD 0.062

Assume that there is no transaction cost and you observe the following quotation: 1. HKD: USD 0.1250 2. USD: JPY 116.20 3. JPY: HKD 0.062 Which is the correct way to conduct Triangular Arbitrage?

If you start with $1,000,000, after 1 round of Triangular Arbitrage, how much USD will you have (your capital Plus your profit)?

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