Using triangle arbitrage

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1) The exchange rates in New York are: $1 = AUD 1.2649 and $1 = £0.6223

A dealer is offering a quote: AUD 1 = £0.8687.

What is the profit you can earn on $10,862 using triangle arbitrage?

Enter your answer round off two two decimal points.

2) Suppose you have the following information:

$1 = £0.8666

$1 = C$1.214

What is the £/C$ cross rate?

Enter your answer rounded off to FOUR decimal points. Do not enter any currency sign in the answer box.

Reference no: EM131989637

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