Question: Write the Triangular Arbitrage Suppose you are given the following three quotes: BankQuote Citibank...$2.0/ UBSSF 1.20/$ Deutsche Bank.SF 2.5/ 1) Is there any opportunity to

Write the Triangular Arbitrage

Suppose you are given the following three quotes:

Bank………………………………………Quote

Citibank…………………………………...$2.0/£

UBS……………………………………SF 1.20/$

Deutsche Bank………………………….SF 2.5/£

1) Is there any opportunity to make risk-free profit? Explain.

2) If the answer is yes, demonstrate how, assuming you have SF2,400,000.

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