Question

Cher has $10,000. The following quotations are available to her for US dollars ($), Convertible Marka...

Cher has $10,000. The following quotations are available to her for US dollars ($), Convertible Marka (KM), and Swiss Francs (SF). She may either buy or sell at the stated rates:

  • U.S. Bank:$2.4/SF        
  • Bosnia Bank:$3.31/KM    
  • Swiss Bank:SF2.21/KM  

What is Cher’s arbitrage profit assuming a triangle arbitrage is possible? (Round answer to nearest whole number.)

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