Question
Suppose you have LKR 1,000,000 with you and a local bank is offering a rate of LKR : AUD 120.98 - 123.15. Further, assume that
Suppose you have LKR 1,000,000 with you and a local bank is offering a rate of LKR : AUD 120.98 - 123.15.
Further, assume that the exchange rate quotations between these two currencies and the USD are;
USD : AUD 0.6970 - 0.7085 and LKR : USD 176.42 - 180.28
Would a triangular arbitrage be profitable under these circumstances?
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Project Financing Asset-Based Financial Engineering
Authors: John D Finnerty
3rd Edition
1118421841, 9781118421840
