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The following rates are available to you. (You may either buy or sell at these rates). Assume you have a $1,000,000 to trade. Citibank Quote
The following rates are available to you. (You may either buy or sell at these rates). Assume you have a $1,000,000 to trade.
| Citibank | Quote for the Chinese Yuan | US$ 0.1504/CY |
| Deutsche Bank | US$ quote for the | US$ 1.1670/ |
| CCCB | quote for the Chinese Yuan | 0.1278/CY |
Given this information, is triangular currency arbitrage possible? Which currency is overvalued? Which currency is undervalued? Calculate your profit if arbitrage is possible. Show your work.
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