Question: 7. Triangular arbitrage Please refer to Table 2 in the datafile. Which of the triangles below results in profitable arbitrage? (Note: you should use bid

7. Triangular arbitrage Please refer to Table 2 in the datafile.

Which of the triangles below results in profitable arbitrage? (Note: you should

7. Triangular arbitrage 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) USD --> JPY --> EUR --> USD b) JPY --> USD --> EUR --> JPY c) EUR --> JPY --> GBP --> EUR d) none of the them A B C DE bid Spot ask 1,0554 1,1689 102,77 Forward (3 months) mid 1,1052 1,0822 1,0532 1,1643 102,33 EUR/USD GBP/USD USD/JPY GBP/EUR EUR/JPY GBP/JPY mid 1,0543 1,1666 102,55 1,1065 107,85 119,63 107,60 119,14 108,10 120,13

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