You are a US-based treasurer with $1,000,000 to invest. The dollar-euro exchange rate is quoted as $1.20 = €1.00 and the dollar-pound exchange rate is $1.80 = £1.00. If a bank offers you a cross rate of £1.00 = €1.50, how much money can you make (in dollars) via triangle arbitrage?

Answer rating: 100% (QA)

Lets break down the process step by step 1 Start with 1000000 2 Convert the dollar... View the full answer