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Assume the following information: Quoted Price Value of GBP in U.S. dollars $1.40 Value of Australian dollar in U.S. dollars $.80 Value of GBP in

Assume the following information:

Quoted Price

Value of GBP in U.S. dollars $1.40

Value of Australian dollar in U.S. dollars $.80

Value of GBP in Australian dollars AU$1.78

Is triangular arbitrage possible?

If so, how much you can benefit from this strategy if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage?

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