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What Is Triangle Arbitrage

question 61

Essay

What is triangle arbitrage?
Using the U.S. dollar,the Canadian dollar,and the euro,construct an example in which triangle arbitrage exists,and then show how to exploit it.


Definitions:

Company-wide Profits

The total earnings of a company after all expenses and taxes have been deducted, across all divisions and product lines.

Profit Centers

Divisions or branches within a company that are treated as separate business units, with their own revenues and expenses.

Division Revenues

The total income generated by a specific division or segment of a company from its operational activities.

Division Profits

The earnings generated by a specific division within a larger company, highlighting its financial performance.

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