Question: TRIANGULAR ARBITRAGE Given BID/ASK QUOTES AS FOLLOWS: CAD$/GBP: BID 1.68 ASK 1.70 CAD$/EURO: BID 1.43 ASK 1.45 EURO/GBP: BID 1.13 ASK 1.15 If you had

TRIANGULAR ARBITRAGE

Given BID/ASK QUOTES AS FOLLOWS:

CAD$/GBP: BID 1.68 ASK 1.70

CAD$/EURO: BID 1.43 ASK 1.45

EURO/GBP: BID 1.13 ASK 1.15

If you had CAD$100,000, how much money can you make by doing a triangular arbitrage?

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