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Suppose you are given the following exchange rates. You have $100,000. Quote Bid price Quote Ask price Value of a British pound in US. Dollars

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Suppose you are given the following exchange rates. You have $100,000. Quote Bid price Quote Ask price Value of a British pound in US. Dollars $1.20 $1.21 Value of a Malaysian ringgit (MYR) in U.S. dollars $.200 $.201 Value of a British pound in Malaysian ringgit (MYR) MYR 6.10 MYR 6.20 1. Explain how you could benefit from engaging in triangular arbitrage? Justify your answer and show the steps of calculations. 2. Explain how the realignment would occur and the impact of this triangular arbitrage

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