Assume you have £100 and can exchange C$350 for £200.Also assume you can exchange $1 for C$1.03 and £1 for $1.61.How much arbitrage profit in pounds can you earn? (Ignore transaction costs. )

Name: Assume you have £100 and can exchange C$350 for £200.Also assume you can exchange $1 for C$1.03 and £1 for $1.61.How much arbitrage profit in pounds can you earn? (Ignore transaction costs. )
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Question

Quizplus · Accepted Answer

[£100 × (C$350/£200)× ($1/C$1.03)× (£1/$1.61)] - £100 = £5.53

Assume You Have £100 and Can Exchange C$350 for £200