Triangular arbitrage and bilateral arbitrage

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1. Triangular arbitrage

Quotation of spot transaction markets:

New York: USD/EUR= 0.8200/15

Paris: GBP/EUR= 1.4740/50

London: GBP/USD= 1.7970/85

If you had 10 million pounds, how to arbitrage?

2. Bilateral Arbitrage

New York: 100 USD = 89.09 EUR

Frankfurt: 1 USD= 90.11 EUR

A. Suppose u have 1 million dollars, how many profit can u gain from arbitrage?

B. Suppose u have 1 million euros, how many profit can u gain from arbitrage?

Reference no: EM131518133

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