Question

Suppose you are given the following exchange rates:

0.0094/0.0098 $/¥

60.7492/60.7512 ¥/CHF

0.5837/0.5841 $/CHF

Is there a triangular arbitrage opportunity?

Answer 1

No there is no triangular opportunity.

Lets us invest 1 $ with that amount of CHF that can be bought =1/0.5841=1.7120 CHF
Amount of Yen purchased with CHF =1.7120*60.7492 =104.0048 Yen
Amount of Dollars obtained from 104.0048 Yen =104.0048*0.0094 =0.977645
So there is loss in dollar

Another way is Lets us invest 1 $ with that amount of YEN that can be bought =1/0.0.0098=102.0408 Yen
Amount of CHF purchased with Yen =102.0408/60.7512=1.6797 CHF
Amount of Dollars obtained from 1.6797 CHF =1.6797*0.5837 =0.9804
So there is loss in dollar in both cases
Hence there is no triangular opportunity