Question
You go to a bank and are given these quotations: You can buy 1 euro for 14 pesos. The bank will pay you 13 pesos
You go to a bank and are given these quotations:
You can buy 1 euro for 14 pesos.
The bank will pay you 13 pesos for 1 euro.
You can buy 1 USD for 0.90 euros.
The bank will pay you 0.80 euros.for 1 USD.
You can buy 1 USD fot 10 pesos.
The bank pay you 1 9 pesos for 1USD.
You have 1,000 USD.
Can you use triangular arbitrage to generate a profit? If so, explain the order of the transactions that you would execute and the profit that you would earn. If you cannot earn a profit from triangular arbitrage, explain why.
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New Venture Creation A Framework For Entrepreneurial Start-ups
Authors: Paul Burns
2nd Edition
1352000504, 978-1352000504
