The investment company has 1 million CAD to mobilize in theforeign exchange market for arbitrage opportunists. Today,

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The investment company has 1 million CAD to mobilize in theforeign exchange market for arbitrage opportunists. Today, youfound the following quote:

EUR/USD 1.1234-65

CAD/USD 0.8509-80

EUR/CAD 1.3336-98

Can you use triangular arbitrage to generate a profit? If so,explain the order of the transactions that you would execute, andthe profit that you would earn. If you cannot earn a profit fromtriangular arbitrage, explain why.

Related Book For answer-question

Fundamentals of corporate finance

ISBN: 978-0470876442

2nd Edition

Authors: Robert Parrino, David S. Kidwell, Thomas W. Bates

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Posted Date: Mar 14, 2024 06:07 PM

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The investment company has 1 million CAD to mobilize in theforeign exchange market for arbitrage opportunists. Today,

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Fundamentals of corporate finance

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