Q 15: The following spot exchange rates involving MYR (Malaysian Ringgit), AUD (Australian dollars), and NZD (New Zealand dollars) are available. (You can either buy or sell at the stated rates -- there are no bid-ask spreads.) Assume you have an initial amount of 4 mio NZD. Can you make a profit via triangular arbitrage? If so, calculate the amount of profit (give your answer to the nearest NZD) in NZD (New Zealand dollars). If not, enter zero.

Spot exchange rates are:

1.07 NZD = 1.0 AUD 2.75 MYR = 1.0 NZD 3.00 MYR = 1.0 AUD