international Finance

Triangular Arbitrage Given the following exchange rate in London and New York: 1. EUR/USD = 1.2000 (London) EUR/CAD = 1.5000 (London) USD/CAD = 1.2539 (New York) i. Calculate if there is any arbitrage opportunities. ii. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment start with USD1,000,000.00. 2. Given the following exchange rate in New York and Canberra: AUD/USD = 0.7926 (Canberra) AUD/INR = 51.0021 (Canberra) USD/INR = 64.3300 (New York) i. ii. Calculate if there is any arbitrage opportunities. Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment start with USD5,000,000.00