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In general, what is arbitrage? What is triangular arbitrage? Consider the following exchange rate quotes: Barclays Bank: $US 1.52/ 1British Pound Canadian Imperial Bank: $US

In general, what is arbitrage? What is triangular arbitrage? Consider the following exchange rate quotes: Barclays Bank: $US 1.52/ 1British Pound Canadian Imperial Bank: $US .80/ 1$Canadian Dollar NatWest Bank: .51 British Pound/ 1$Canadian Dollar Assuming you had $1million, is this a profit opportunity? If so, how would you exploit it? Please explain. Calculate your profit if an arbitrage opportunity is present.

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