Question: You are a U . S . - based treasurer with $ 1 , 0 0 0 , 0 0 0 to invest. The dollar

You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.50=1.00 and the dollar-pound exchange rate is quoted at $2.00=1.00. If a bank quotes you a cross rate of 1.00=1.27, how much arbitrage profit can you make?
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You are a U.S.-based treasurer with $1,000,000 to invest. The dollar-euro

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