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Assume the following information: Explain the steps that would reflect triangular arbitrage. I. One could obtain Canadian dollars with U.S. dollars, sell the Canadian dollars
Assume the following information: Explain the steps that would reflect triangular arbitrage. I. One could obtain Canadian dollars with U.S. dollars, sell the Canadian dollars for New Zealand dollars and then exchange New Zealand dollars for U.S. dollars. II. One could obtain U.S. dollars with Canadian dollars, sell the U.S. dollars for New Zealand dollars and then exchange New Zealand dollars for Canadian dollars. II. One could obtain New Zealand dollars with U.S. dollars, sell the New Zealand dollars for Canadian dollars and then exchange Canadian dollars for U.S. dollars. Compute the profit from this strategy if you had $5 million to use. Do not round intermediate calculations. Round your answer to the nearest dollar. \$
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