Question
You are a US-based treasurer with USD 1,250,000 to invest. Your bank quotes you the following exchange rates: USD 1.00 / EUR and EUR 1.25
You are a US-based treasurer with USD 1,250,000 to invest. Your bank quotes you the following exchange rates: USD 1.00 / EUR and EUR 1.25 / GBP and GBP 0.64 / USD. What is your arbitrage profit in USD if you take advantage of triangular arbitrage?
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
