Question
Great Pyramids. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using
Great Pyramids. Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an intermarket arbitrage profit using Libyan dinars (LYD) and Saudi riyals (SAR). He has USD1 comma 000 comma 000 to work with so he gathers the following quotes. Is there an opportunity for an arbitrage profit? Citibank quotes U.S. dollar per Libyan dinar $ 1.8964 equals LYD 1.00 National Bank of Kuwait quotes Saudi riyal per Libyan dinar SAR 1.9246 equals LYD 1.00 Barclays quotes U.S. dollar per Saudi riyal $ 0.2785 equals SAR 1.00 Calculate the profit (loss) from the intermarket arbitrage profit through path #1 below:(Round to the nearest cent.) Path #1: US$ to riyals to dinars to US$ Start with US$ $ 1,000,000.00 Convert to riyals at Barclays quote SAR Enter any number in the edit fields and then click Check Answer.
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