The following exchange rates are available to you. (You can buy or sell at the stated rates.)
SGD/USD 
1.65 

USD/CHY 
0.16 

SGD/CHY 
0.30 
Assume you have an initial USD 12,000. Can you make a profit via triangular arbitrage? If so, show the steps and calculate the amount of profit in USD.
Solution
Initial USD= $12000
1 USD= SGD 1.65
1 CHY= USD 0.16
1 CHY = SGD 0.30
STEP 1:
Sell USD 12000 to buy SGD
To execute above transaction , exchange rate is 1 USD = SGD 1.65
Thus $12000* SGD 1.65= SGD 19800
Now we have SGD 19800
STEP 2:
Sell SGD 19800 to buy CHY
To execute above transaction , exchange rate is 1 CHY = SGD 0.30
Thus SGD 19800/CHY 0.30= CHY 66000
Now we have CHY 66000
STEP 3:
Sell CHY 66000 to buy USD
To execute above transaction, exchange rate is 1 CHY = 0.16 USD
Thus CHY 66000* USD 0.16= USD 10560
Therefore by using traingular arbitrage , we make loss ( USD 10560  USD 12000) = USD 10560
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