Question

Triangular Arbitrage As of Sunday, October 27th, 2019, 02:50 pm (GMT) the following quotes apply. Currency...

Triangular Arbitrage
As of Sunday, October 27th, 2019, 02:50 pm (GMT) the following quotes apply.

Currency quote
Value of Canadian dollar in U.S. dollars 0.7657
Value of New Zealand dollar in U.S. dollars 0.6349
Value of Canadian dollar in New Zealand dollars 1.2298

Question:
Given the information above, is “triangular arbitrage” possible? Why? Or Why not? If it is possible,
explain the steps that would reflect the “triangular arbitrage” process and compute the potential
profit from this strategy if you had 1,000,000 USD at your disposal to use for this purpose.

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