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Today's spot rates are U.S. $0.6879/Swiss franc and U.S. $1.5583/British pound sterling. How many pounds must a Swiss franc be able to buy such that

Today's spot rates are U.S. $0.6879/Swiss franc and U.S. $1.5583/British pound sterling. How many pounds must a Swiss franc be able to buy such that a triangular arbitrage will not exist?

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To check for the possibility of triangular arbitrage we can use the given exchange rates to determine a cross rate between Swiss francs CHF and British pounds GBP via the US dollar USD as an intermediary currency First lets calculate the implied CHFUSD exchange rate ... blur-text-image

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