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Now suppose you are observing the bid-ask spreads of the three exchange rates among US dollars (USD, $), Singapore dollars (SGD, S$), and Thai baht

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Now suppose you are observing the bid-ask spreads of the three exchange rates among US dollars (USD, $), Singapore dollars (SGD, S$), and Thai baht (THB, B) as follows. Shid SGD USD = 1.40, Sask (SGD ) = 1.41, USD Soid THE SGD = 22.45, Sast (THB SGD 22.55, Sid (TNB = 31.77, Sask (THB ) = 31.87, USD Traders use the bid and ask rates to buy and sell the currency, respectively. If a US dollar holder does the triangular arbitrage with $1000 once, then the resultant arbitrage profit will be US dollar USD $ B31.77/S-B31.87/8 S$1.40/$-$$1.41/$ Thai baht THB, B Singapore dollar SGD, 5$ B22.45/SS-B22.55/5$ Thai baht THB, B O $0 O $1 O $2 O $11

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