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You observe the following spot exchange rates: 1= $1.60 CAD 1= $0.85 1= CAD 2 Based on the rates above, is there an oppurtunity to
You observe the following spot exchange rates:
1= $1.60
CAD 1= $0.85
1= CAD 2
Based on the rates above, is there an oppurtunity to use triangular arbitrage to earn a profit? Show the profit you can make assuming that you start with 10,000.
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