Interest Rate Arbitrage

Bank A is offering 82 Yen per dollar.

Bank B is offering $1.60 per British Pound

Bank C is offering 128 Yen per British Pound.

If you have 100,000,000 Yen, can you make a triangular profit? The quoted cross rate is the Yen per British Pound?

Identify the paths you would take to make a profit and the path that would yield a loss instead of a profit?

Which banks would you do your sell and buy transactions with?