Explain the steps and compute the profit

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Reference no: EM131814638

The following quotations are available to you: Observed or Market quotes: Mexican peso 17.50 per US $ euro 0.8512 per US $ # of Pesos per euro: 22.15 Pesos per euro Is triangular arbitrage feasible? If you have 1 million $, explain the steps and compute the profit. At what cross-rate, triangular arbitrage will NOT be feasible or profitable?

Reference no: EM131814638

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