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You have the following spot rates between the Chinese yuan (CNY), the Mexican peso (MXN), and the Peruvian sol (PEN): Rate 1 Rate 2 Rate

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You have the following spot rates between the Chinese yuan (CNY), the Mexican peso (MXN), and the Peruvian sol (PEN): Rate 1 Rate 2 Rate 3 PEN 0.2265/MXN MXN 2.6120/CNY PEN 0.6204/CNY Which of the following is the closest to the arbitrage profit that is possible at these rates? a. 4.15% b. 4.60% C. 4.86% d. 4.64% e. 5.26%

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