Triangular Arbitrage:

A Tokyo bank offers to sell euros at 126.60 yen per euro and buy

126.60 yen per euro. A Berlin bank offers to sell pounds at

1.5939 euros per pound and buy pounds at 1.5939 euros per pound.

A London bank offers to sell pounds at 204.93 yen per pound

and buy pounds at 204.93 yen per pound. Starting with 50,000 euros,

determine some way to make a profit.

4. What will be your profit in euros?

5. Along the way in the above transactions, you had to momentarily hold

pounds. How many pounds did you hold?

6. Along the way in the above transactions, you had to momentarily hold

yen. How many yen did you hold?