Assume you can exchange Can$179 for £100.Also assume you can exchange Can$1.1238 for $1 and $1.6024 for £1.How much profit can you earn in U.S.dollars if you start out with $500? Ignore transaction costs.

Name: Assume you can exchange Can$179 for £100.Also assume you can exchange Can$1.1238 for $1 and $1.6024 for £1.How much profit can you earn in U.S.dollars if you start out with $500? Ignore transaction costs.
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Question

Quizplus · Accepted Answer

[$500(Can$1.1238 / $1)(£100 / Can$179)($1.6024 / £1)] − $500 = $3.01

Assume You Can Exchange Can$179 for £100