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Citibank trader ruminder dhillon

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Reference no: EM133123028

Inspired by his recent trip to the Great Pyramids, Citibank trader Ruminder Dhillon wonders if he can make an Intermarket arbitrage profit using Libyan dinars and Saudi riyals. He has $1,000,000 to work with, so he gathers the following quotes:

Citibank quotes U.S. dollar per Libyan dinar: $0.7200 per LYD

National Bank of Kuwait quotes Saudi riyal per Libyan dinar: SAR 2.7200 per LYD

Barclay quotes U.S. dollar per Saudi riyal: $0.2700 per SAR

Show how he can make an arbitrage profit. What is his profit?

Reference no: EM133123028

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