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

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

Use your solution of the following problem to answer the question. Suppose the following exchange rates are available in three world markets A, B and C. A: Y/U$ = 108.25 B:/C$ = 79.88 C: C$/U$ = 1.3144) 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 market therefore more valuable at B. A and C. Y/C$ should be quoted as and is 95.56. C$ 84.35. Yen 82.36. Yen 85.97.0$

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