How much money can she earn via triangular arbitrage

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Suppose a hedge fund manager with $1,000,000 to invest notices that the dollar/euro exchange rate is quoted as $1.5/€ and the dollar/pound exchange rate is quoted at $1.8/£. If a bank quotes a cross rate of €1.2/£, how much money can she earn via triangular arbitrage (in dollars)? Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your response.

Reference no: EM131492598

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