National Bank quotes the following for the British pound and the New Zealand dollar:
$\begin{array}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price } \
\text {Value of a British pound (£) in $\$$ } & \text { \$ 1.61 }&\text { \$1.62 } \
\text {Value of a New Zealand dollar (NZ\$) in $\$$ } &\text { \$ .55 }&\text { \$ 0.56 } \
\text {Value of a British pound in } && \
\text {New Zealand dollars } &\text NZ\$2.95&\text 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}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price }  \
\text {Value of a British pound (£) in $\$$ } & \text { \$ 1.61 }&\text { \$1.62 } \
\text {Value of a New Zealand dollar (NZ\$) in $\$$ } &\text { \$ .55 }&\text { \$ 0.56 }  \
\text {Value of a British pound in } && \
\text {New Zealand dollars } &\text NZ\$2.95&\text 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}{ll}
&\text { Quoted Bid Price } & \text {Quoted Ask Price }  \
\text {Value of a British pound (£) in $\$$ } & \text { \$ 1.61 }&\text { \$1.62 } \
\text {Value of a New Zealand dollar (NZ\$) in $\$$ } &\text { \$ .55 }&\text { \$ 0.56 }  \
\text {Value of a British pound in } && \
\text {New Zealand dollars } &\text NZ\$2.95&\text 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