Determine some way to make a profit

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Reference no: EM131444527

A Tokyo bank offers to sell euros at 121.50 yen per euro and buy 121.50 yen per euro. A Berlin bank offers to sell pounds at 1.5939 euros per pound and buy pounds at 1.5939 euros per pound. A London bank offers to sell pounds at 191.31 yen per pound and buy pounds at 191.31 yen per pound. Starting with 200,000 euros, determine some way to make a profit.

1. What will be your profit in euros?

2. Along the way in the above transactions, you had to momentarily hold pounds. How many pounds did you hold?

3. Along the way in the above transactions, you had to momentarily hold yen. How many yen did you hold?

Reference no: EM131444527

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