National Bank quotes the following for the British pound and the New Zealand dollar:
$\begin{array}{lll}
& \underline{\text { Quoted Bid Price}} & \underline{\text {Quoted Ask Price}} \
\text { Value of a British pound (£) in $\$$ } & \$ 1.61 & \$ 1.62 \
\text { Value of a New Zealand dollar (NZS) in $\$$ } & \$ .55 & \$ .56\
\text {Value of a British pound in} & & \
\text { New Zealand dollars } & NZ\$2.95 & NZ\$ 2.96\
\end{array}$

Assume you have $10,000 to conduct triangular arbitrage. What is your profit from implementing this strategy?

Question

National Bank quotes the following for the British pound and the New Zealand dollar:
$\begin{array}{lll} 
& \underline{\text { Quoted Bid Price}} & \underline{\text {Quoted Ask Price}} \
\text { Value of a British pound (£) in $\$$ } & \$ 1.61 & \$ 1.62 \
\text { Value of a New Zealand dollar (NZS) in $\$$ } & \$ .55 & \$ .56\
\text {Value of a British pound in} &  & \
\text { New Zealand dollars } & NZ\$2.95 & NZ\$ 2.96\
\end{array}$

Assume you have $10,000 to conduct triangular arbitrage. What is your profit from implementing this strategy?

Quizplus · Accepted Answer

The Answer of National Bank quotes the following for the British pound and the New Zealand dollar:
$\begin{array}{lll} 
& \underline{\text { Quoted Bid Price}} & \underline{\text {Quoted Ask Price}} \
\text { Value of a British pound (£) in $\$$ } & \$ 1.61 & \$ 1.62 \
\text { Value of a New Zealand dollar (NZS) in $\$$ } & \$ .55 & \$ .56\
\text {Value of a British pound in} &  & \
\text { New Zealand dollars } & NZ\$2.95 & NZ\$ 2.96\
\end{array}$

Assume you have $10,000 to conduct triangular arbitrage. What is your profit from implementing this strategy?

National Bank Quotes the Following for the British Pound and the New