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Suppose that the following quotes apply. Currency GBP-USD AUD-USD AUD-GBP Quote 1.2763 0.6696 0.5238 Questions: Given the information above, is triangular arbitrage possible? Why?

Suppose that the following quotes apply. Currency GBP-USD AUD-USD AUD-GBP Quote 1.2763 0.6696 0.5238 Questions: Given the information above, is "triangular arbitrage" possible? Why? Or why not? If it is possible, explain the steps that would reflect the "triangular arbitrage" process and compute the potential profit from this strategy if you had 1,250,000 USD at your disposal to use for this purpose.

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