Question: 6. Triangular arbitrage 5 pong Please refer to Table 2 in the datafile. Which of the triangles below results in profitable arbitrage? (Note: you should

6. Triangular arbitrage 5 pong Please refer to Table 2 in the datafile. Which of the triangles below results in profitable arbitrage? (Note: you should use bid and ask rates for this question) a) JPY --> GBP --> EUR --> JPY b) USD --> GBP --> EUR --> USD none of them d) EUR --> JPY --> USD --> EUR 4 A A B C D E F G G I ! 1 2 3 4 5 6 7 8 9 10 11 12 13 EUR/USD GBP/USD USD/JPY GBP/EUR EUR/JPY GBP/JPY bid 1,0532 1,1643 102,33 1,1032 107,60 119,14 Spot ask 1,0553 1,1689 102,77 1,1098 108,10 120,13 mid 1,0542 1,1666 102,55 1,1065 107,85 119,64 Forward (3 months) mid 1,1052 1,1822 104,75 1,1245 110,56 122,34

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