Question
Go to http://www.usforex.com/forex-tools/historical-rate-tools/historical-exchange-rates. Use the site to determine the actual exchange rate between your two foreign currencies (Euro and Mexican peso) on May 1, 2015.
Go to http://www.usforex.com/forex-tools/historical-rate-tools/historical-exchange-rates. Use the site to determine the actual exchange rate between your two foreign currencies (Euro and Mexican peso) on May 1, 2015. 1. List the actual exchange rate for the two currencies and the cross rate you calculated for that date in step I.F. above. 2. Show the profit earned through the process of triangular arbitrage if there were no transaction costs and you were to begin with the equivalent of $50,000,000 (U.S.) using the exchange rates from May 1, 2015. Show all calculations for the necessary steps.
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