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Say you found a currency exchange that would give you 4 koruna for 1 kuna: K4/kn. Explain whether and how you could make money using
- Say you found a currency exchange that would give you 4 koruna for 1 kuna: K4/kn. Explain whether and how you could make money using triangular arbitrage. To keep us all on the same page, conduct your analysis assuming you have $100 to invest. Also note, that you should start and end in dollars, since we are in the US. However, the arbitrage opportunity could change with the direction you take for the second and third countries (so try it going from $ to K to kn to $, and also from $ to kn to K to $).
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