What is the profit from triangular arbitrage

Reference no: EM13303700

The Pound spot rate is $1.56. The $/Euro spot rate is $1.25. A bank quotes the Pound/Euro cross-rate as Pound 0.94/Euro. If triangular arbitrage is possible and you have $1,000,000, what is the profit from triangular arbitrage?

Reference no: EM13303700

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