How you can make a profit from triangular arbitrage

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Reference no: EM1344807

Triangular Arbitrage You obtain the following quotes from different banks. One bank is willing to buy or sell Japanese yen at an exchange rate of 110 yen per dollar. A second bank is willing to buy or sell the Argentine peso at an exchange rate of $. 37 per peso. A third bank is willing to exchange Japanese yen at an exchange rate of 1 Argentine peso = 40 yen. Show how you can make a profit from triangular arbitrage and what your profit would be if you had $ 1,000,000

Reference no: EM1344807

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