(See Solution) National Bank quotes the following for the British pound and the New Zealand dollar: Quoted Bid Price Quoted Ask Price Value of a British pound
Question: National Bank quotes the following for the British pound and the New Zealand dollar:
Quoted Bid Price Quoted Ask Price
Value of a British pound (£) in $ $1.5267 $1.5272
Value of a euro in $ $.9761 $.9766
Value of a euro in British pounds £0.6511 £0.6541
Assume you have $100 to conduct triangular arbitrage. What is your profit from implementing this strategy?
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