Paula has $100,000. The following quotations are available to her for US dollars ($), Euros (€) and Yen (¥). She may either buy or sell at the stated rates:
– U.S. Bank: $1.15/€ –
French Bank: €0.0098/¥ –
Japanese Bank: ¥90.40/$
What is Paula’s approximate arbitrage profit assuming a triangle arbitrage is possible?
A. $7,104
B. $8,021
C. $1,846
D. $7,037
E. $1,881
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