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Problem 2 (Triangular Arbitrage) Assume the following information, Exchange Rates SUNDICAD SUNDNZD SNZD CAD Quoted Price USD 0.90 / CAD USD 0.30/NZD NZD 3.02 /

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Problem 2 (Triangular Arbitrage) Assume the following information, Exchange Rates SUNDICAD SUNDNZD SNZD CAD Quoted Price USD 0.90 / CAD USD 0.30/NZD NZD 3.02 / CAD Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had USD 1 million to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage

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