Question: Evaluate the arbitrage opportunity with the triangular arbitrage methods for the following currency pairs and identify the preferred direction of trade Bid Ask CHFUSD 1.1625

Evaluate the arbitrage opportunity with the triangular arbitrage methods for the following currency pairs and identify the preferred direction of trade

Bid

Ask

CHFUSD

1.1625

1.1631

USDGBP

0.6325

0.6333

CHFGBP

0.7045

0.7076

Please calculate both directions and provide the answers. In your answer below, you could provide a 3x3 table (see the top right corner of the text box) and add the following:

Calculation

Preferred direction (Y/N)

Direction 1

answer

answer

Direction 2

answer

answer

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