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PROBLEM 1: Suppose Bank One gives the following quotes: 150 JPY/USD 2.40 USD/GBP 210 JPY/GBP Depending on these quotes, show whether there is a triangular

PROBLEM 1: Suppose Bank One gives the following quotes:

150 JPY/USD

2.40 USD/GBP

210 JPY/GBP

Depending on these quotes, show whether there is a triangular arbitrage opportunity. If there is and you have 2,000,000 JPY on hand, how would you conduct your arbitrage strategy and what would be the amount of arbitrage that can be made?

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