Question: Triangular arbitrage.Great Exchanges, Inc. is a currency exchange company located at most international airports. Today, a clerk has made a mistake on one of the
Triangular arbitrage.Great Exchanges, Inc. is a currency exchange company located at most international airports. Today, a clerk has made a mistake on one of the currency exchanges and has posted the following rates:
| $ for | for | for $ | for $ | for | $ for |
| 0.5325 | 1.4815 | 1.3337 | 1.8779 | 1.0150 | 0.7498 |
Which corresponding rates do not match? If you have
$100,
how much would you make on one pass through the currencies if you went the wrong way for the arbitrage?
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
