Question
Suppose the $/ exchange rate is $1.1874 = 1.0, the Yen/ exchange rate is 127.73 (1 will purchase 121.73 yen), and the US $ will
Suppose the $/ exchange rate is $1.1874 = 1.0, the Yen/ exchange rate is 127.73 (1 will purchase 121.73 yen), and the US $ will purchase 105.68 yen. In this scenario arbitrage is possible. What is the potential profit per $1,000,000 US if one conducts triangular arbitrage?
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Finance For Non Financial Managers
Authors: Pierre G. Bergeron
5th Edition
0176104070, 9780176104078
