Question
Travelex Australia provides the following three exchange rates. You assume that there is a triangular arbitrage profit opportunity exists based on the following three quotations.
Travelex Australia provides the following three exchange rates. You assume that there is a triangular arbitrage profit opportunity exists based on the following three quotations. Calculate the arbitrage profit in percentage. (enter the two decimal number without sing or symbol).
Exchange rates
bid price
ask price
Value of a Chinese yuan (CNY) in Australian dollars (A$)
A$0.2040
A$0.2235
Value of a Malaysian ringgit (MYR) in Australian dollars (A$)
A$0.3094
A$0.3214
Value of a Malaysian ringgit (MYR) in Chinese yuan (CNY)
CNY1.7227
CNY1.9475
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Mechanics of Materials
Authors: Russell C. Hibbeler
10th edition
134319656, 978-0134319650
