Assume the following information for a bank quoting on spot exchange rates:
Exchange rate of Singapore dollar in U.S. $
Exchange rate of pound in U.S. $
Exchange rate of pound in Singapore dollars
Based on the information given, as you and others perform triangular arbitrage, what should logically
happen to the spot exchange rates?
Bank A quotes a bid rate of $.300 and an ask rate of $.305 for the Malaysian ringgit (MYR). Bank B
quotes a bid rate of $.306 and an ask rate of $.310 for the ringgit. What will be the profit for an
investor who has $500,000 available to conduct locational arbitrage?
Which of the following is an example of triangular arbitrage initiation?