Question: (Triangular arbitrage. 3/3) You are a U.S.-based treasurer with*$1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.40 = 1.00 and the pound-donar exchange

(Triangular arbitrage. 3/3) You are a U.S.-based treasurer with*$1,000,000 to invest. The euro-dollar exchange rate is quoted as $1.40 = 1.00 and the pound-donar exchange rate is quoted as $1.65 = 1.00. If a bank quotes you a cross rate of 1 .00 = 1.20, how much money can an astute trader make

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