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 if you have A$1.66 million or MYR2.41 million or CNY3.59 million. (enter the whole number without sing or symbol).
Exchange rates | bid price | ask price |
Value of a Chinese yuan (CNY) in Australian dollars (A$) | A$0.2000 | A$0.2240 |
Value of a Malaysian ringgit (MYR) in Australian dollars (A$) | A$0.3003 | A$0.3291 |
Value of a Malaysian ringgit (MYR) in Chinese yuan (CNY) | CNY1.7480 | CNY1.9428 |
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