National Bank quotes the following for the British pound and the New Zealand dollar. Discuss whether triangular arbitrage is possible. If it is possible, describe the steps you would take to conduct it and calculate the arbitrage profit if you begin with $1,000,000.

Currency

Quoted Bid Price

Quoted Ask Price

British pound ()

$1.59

$1.61

New Zealand dollar (NZD)

$.57

$.59

British pound ()

NZD 2.97

NZD 2.99