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Triangular Arbitrage with Southeast Asian Currencies You observe the following spot exchange rates: Base Currency/Quote Currency SGD/IDR SGD/MYR MYR/IDR Bid 10611.756 3.1121 3409.0 Ask 10611.836

Triangular Arbitrage with Southeast Asian Currencies

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You observe the following spot exchange rates: Base Currency/Quote Currency SGD/IDR SGD/MYR MYR/IDR Bid 10611.756 3.1121 3409.0 Ask 10611.836 3.1123 3409.4 IDR, MYR, and SGD are the currency codes for the Indonesian Rupiah, Malaysian Ringgit, and Singapore Dollar, respectively. Is there an arbitrage strategy? Outline a trading strategy to profit from such an opportunity without risk. Otherwise, explain why no such strategy exists. (10 Points)

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