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.

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Definitions:

Total Profit

The entire financial gain obtained by a business or an individual after all expenses and costs have been deducted from the total revenue.

Development Requirement

Conditions that must be met for a region or country to achieve economic growth, including infrastructure, education, and healthcare.

Inflation Rate

The percentage increase in the price level of goods and services in an economy over a period of time, typically measured on an annual basis.

Government Control

Government control refers to the mechanisms, regulations, and actions taken by a government to oversee, direct, or manage its country's economic activities, industries, or individual behavior.