QUESTION 2
Assume the following information:
Value of an Australian dollar (A$) in \$
Value of Mexican peso in \$
Value of an Australian dollar in
Mexican pesos
Quoted Bid Price
Quoted Ask Price
\$0.67
\$0.69
.074
\$.077
8.2
8.5
Assume you have \$100,000 to conduct triangular arbitrage. What will be your profit from implementing this strategy?
a. \$6,133
b. \$2,368
c. \$6,518
d. \$13,711