You are a US-based treasurer with USD 1,250,000 to invest. Your bank quotes you the following exchange

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You are a US-based treasurer with USD 1,250,000 to invest. Your bank quotes you the following exchange rates: USD 1.00 / EUR and EUR 1.25/GBP and GBP 0.64/USD. What is your arbitrage profit in USD if you take advantage of triangular arbitrage?

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The Macro Economy Today

ISBN: 978-1259291821

14th edition

Authors: Bradley R. Schiller, Karen Gebhardt

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Posted Date: Jan 09, 2021 12:21 AM

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You are a US-based treasurer with USD 1,250,000 to invest. Your bank quotes you the following exchange

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Eur 1 USD GBP 125 Eur USD 064 GBP US treasurer shoul... View the full answer

The Macro Economy Today

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