Question
Assume the following information for a bank quoting on spot exchange rates: Exchange rate of pound in U.S. $ = $1.50 Exchange rate of Singapore
Assume the following information for a bank quoting on spot exchange rates:
| Exchange rate of pound in U.S. $ | = | $1.50 |
| Exchange rate of Singapore dollar in U.S. $ | = | $.30 |
| Exchange rate of pound in Singapore dollars | = | S$4.95 |
Given the information and you have $1,000,000. Is triangular arbitrage possible? If so, what is your arbitrage strategy?
The arbitrage strategy is ?
Please do not round during intermediate steps and round your final answer to two decimal places.
please show work
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
