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The exchange rate between the Yen and USD is 120 yen/USD. The exchange rate between British Pound and USD is 1.30 USD per pound. The
The exchange rate between the Yen and USD is 120 yen/USD. The exchange rate between British Pound and USD is 1.30 USD per pound. The exchange rate between British pound and Yen is 162. What are the potential arbitrage profits if you can start with 1,000,000 British pounds or 1,300,000 USD.
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a. $38760
b. $34870
c. $45600
d. $50,000
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