Assume the Following Information Assume You Have $100,000 to Conduct Triangular Arbitrage

question 94

Multiple Choice

Assume the following information:
$\begin{array}{ll}&\text { Quoted Bid Price } & \text {Quoted Ask Price } \\\text {Value of an Australian dollar (AS) in \(\$\) } & \text { \$ 0.67 }&\text { \$ 0.69 } \\\text {Value of Mexican peso in \(\$\) } &\text { \$ .074 }&\text { \$ .077 } \\\text {Value of an Australian dollar in } && \\\text {Mexican pesos } &\text { 8.2 }&\text {8.5 } \\\end{array}$
Assume you have $100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?

• A) $6,133
• B) $2,368
• C) $6,518
• D) $13,711

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