(15 points) Triangular Arbitrage w bid ask spreads Continue to assume that you are a large money center bank and you have 3,000,000 South Korean Won The following banks make the following quotes Bank Location of Bank Exchange rate quotes Bank BNP Paribas Paris, France 137 1472 yen euro 137 1463 yen euro The Bank of Tokyo Mitsubishi UFJ Tokyo, Japan 10 1251 won yen 10 1247 won yen Korea Exchange Bank Seoul, Korea 1386 57 won euro 1386 42 won euro Determine a way to make a profit Using complete sentences, describe the actions you would take to make this profit, stating the amounts of currency you would exchange in each step and through what institution you make that exchange Also, clearly state the profit you make and be clear what currency that profit is in

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Question: (15 points) Triangular Arbitrage w/ bid-ask spreads Continue to assume that you are a large money center bank and you have 3,000,000 South Korean Won.

(15 points) Triangular Arbitrage w/ bid-ask spreads Continue to assume that you are a large money center bank and you have 3,000,000 South Korean Won. The following banks make the following quotes:

Bank	Location of Bank	Exchange rate quotes
Bank BNP Paribas	Paris, France	137.1472 yen/euro 137.1463 yen/euro
The Bank of Tokyo - Mitsubishi UFJ	Tokyo, Japan	10.1251 won/yen 10.1247 won/yen
Korea Exchange Bank	Seoul, Korea	1386.57 won/euro 1386.42 won/euro

Determine a way to make a profit. Using complete sentences, describe the actions you would take to make this profit, stating the amounts of currency you would exchange in each step and through what institution you make that exchange. Also, clearly state the profit you make and be clear what currency that profit is in.

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