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How much money can she make via triangular arbitrage

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A banker has $5,000,000 to invest in the foreign currency market. The dollar-euro exchange rate is quoted as $1.60/ € and the dollar-pound exchange rate is quoted at $2.00/£. If a bank quotes a cross rate of €1.30/£, how much money can she make (in terms of dollars) via triangular arbitrage?

Reference no: EM132546133

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