Using triangular arbitrage methods

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Reference no: EM131322432

Using the banks’ offering data below for the Japanese yen, British pound and U.S. dollar, explain how both a profit and loss can be attained using triangular arbitrage methods. Create triangular graphics, similar to to illustrate your process. Include which banks you would use, as well as specific transactions (steps) you would make to buy and sell currency. Explain the rationale for your actions. You have 100,000,000 yen and the quoted cross rate is the yen per British pound.

• Bank A is offering 82 yen per dollar.

• Bank B is offering $1.60 per British pound.

• Bank C is offering 128 yen per British pound.

Reference no: EM131322432

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