Homework answers / question archive / Given the following exchange rate in New York and Canberra:   AUD / USD = 0

Given the following exchange rate in New York and Canberra:   AUD / USD = 0

Statistics

Share With

Given the following exchange rate in New York and Canberra:

AUD / USD = 0.7926 (Canberra)

AUD / INR = 51.0021 (Canberra)

USD / INR = 64.3300 (New York)

Calculate if there is any arbitrage opportunities.

Calculate the profit/ (loss) from the above triangular arbitrage assuming your investment start with USD5,000,000.00.