Question
In New York 1 GBP = 1.3222 USD In Paris 1 EURO = 1.1788 USD In London 1 GBP = 1,1089 EURO Is triangular arbitrage
In New York 1 GBP = 1.3222 USD
In Paris 1 EURO = 1.1788 USD
In London 1 GBP = 1,1089 EURO
Is triangular arbitrage possible between these quotations? If so, How much USD could you profit with 1,000,000 USD. Assume that there are no transaction cost.
I would be glad if you explain it step by step in your own words in detail. especially with how the transactions are and the calculations of the transactions, thank you in advance.
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Financial Markets And Institutions
Authors: Anthony Saunders, Marcia Cornett
7th Edition
1259919714, 978-1259919718
