Question: Use your solution of the following problem to answer question. Suppose the following exchange rates are available in three world markets A, B and C.

 Use your solution of the following problem to answer question. Suppose

Use your solution of the following problem to answer question. Suppose the following exchange rates are available in three world markets A, B and C. A: /U$ = 112.73 B: /C$ = 88.12 C: C$/U$ = 1.3113 Assume there are no transaction costs. Follow the given instructions carefully and show whether triangular arbitrage exists and compute the percentage profit possible from triangular arbitrage. Using cross rates from markets A and C, Y/C$ should be quoted as --------, A / --- is therefore more valuable at B. and 95.56, Canadian dollar 0 84.35. Yen 82.55. Yen 85.97, Canadian dollar

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