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You are a currency trader. You currently have an account of 10,000,000 Indian Rupees. At current exchange rates, 1000 Indian Rupees (INR) = 20 Australian
You are a currency trader. You currently have an account of 10,000,000 Indian Rupees. At current exchange rates, 1000 Indian Rupees (INR) = 20 Australian Dollars (AUD). The Australian Dollar is also trading at 1 AUD = 150 Hungarian Forint (HUF). You check the exchange rates and find that 1 HUF is currently trading at 0.5 INR. How can you profit from this? (Please feel free to use a sheet for calculations. It may also be helpful to create a diagram showing the currency flows.)
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