Question

An emergency can anyone assist me to solve this :

Donny is an exchange rate trader based in Kuala Lumpur. He has received this
information on the exchange rates quoted by 3 different banks as follows:

	Bid
Bank A (MYR/SGD)	3.0680	3.0701
Bank B (USD/SGD)	0.7220	0.7451
Bank C (MYR/USD)	4.2754	4.3456

Assume that he has MYR200,000 to be used as a starting amount to benefit from this
pricing discrepancy. Calculate the triangular arbitrage profit.

Answer 1

MYR/SGD = 3.0680/3.0701
USD/SGD = 0.7220/0.7451
MYR/USD = 4.2754/4.3456
Sell MYR200000 for SGD,
SGD Inflow = 200000/3.0701
	= SGD 65144.46
Sell SGD 65144.46 for USD
USD Inflow = 65144.46*0.7220
	= USD 47034.3
Sell USD 47034.3 for MYR
MYR Inflow = 47034.3*4.2754
	= MYR 201090.4
Profit due to arbitrage = MYR 201090.4 - MYR 200000
		= MYR 1090.44