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Suppose the current exchange rates are USD 1.20 / EUR 1.00 and USD 1.80 / GBP 1.00/ if your bank quotes you a cross rate

  1. Suppose the current exchange rates are USD 1.20 / EUR 1.00 and USD 1.80 / GBP 1.00/ if your bank quotes you a cross rate of GBP 1.20 / EUR 1.80, what is the arbitrage profit if you start with USD 1,000,000?

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