Given three hypothetical exchange rates: $\le$/$ = 0.6, $\times$/$ = 0.9 and $\times$/$\le$ = 1.6, what is the arbitrage profit assuming you have $100?

Question

Quizplus · Accepted Answer

Using $100:
- Convert to F1F1F10: $100 x 0.6/F1F1F10 = F1F1F60
- Convert F1F1F60 to F1F1F1S1: F1F1F60 x 0.9/F1F1F10 = F1F1F54
- Convert F1F1F54 to $: F1F1F54/1.6/F1F1F10 = $6.67
So, the arbitrage profit would be $6.67 - $100 = $6.67 - $100 = $6.67.

Given Three Hypothetical Exchange Rates ≤\le≤ /$ = 06 ×\times× /$ = 09 And Hypothetical

Given Three Hypothetical Exchange Rates $\le$ /$ = 06 $\times$ /$ = 09 And Hypothetical