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Determining the exchange rate calculation

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Reference no: EM132613563

Suppose we observe the following quotes: Bid Ask NAB USD/GBP 1.3145 1.3155 ANZ USD/CAD 0.7688 0.7697 CBA

CAD/GBP

1.6901

1.6912

Do we have an arbitrage opportunity?

If so, starting with 2.5 million USD, how do we make profits and by how much?

Show your workings.

In your answer, keep 4 decimal places for exchange rate calculation.

Reference no: EM132613563

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