Posted: January 17th, 2016

How you can make a triangular arbitrage profit by trading at these prices? What is the profit? Explain and discuss your calculations.

Assume you are a trader in foreign currencies and you look for arbitrage. From the quote screen on your computer terminal, you observe the exchange rate quotations below. (Numbers should be rounded to 4 decimal places. Please note that your answers will be worthy zero mark if they do not include currency symbols, £, $, €.)