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The equilibrium dollar-euro spot rate is $1.3220. Indicate how you would use triangular arbitrage to take advantage of the following exchange rate quotations: a. The

The equilibrium dollar-euro spot rate is $1.3220. Indicate how you would use triangular arbitrage to take advantage of the following exchange rate quotations:

a. The equilibrium U.S. dollar-Colombian peso spot rate is (USD/COP) 0.0004285; a bank quotes a rate of 3,046.73 pesos per euro.

b. The equilibrium Australian dollar- U.S. dollar spot rate is (AUD/USD) 1.3051; a bank quotes a rate of 1.7438 Australian dollars per euro.

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