c) Bid-ask rates offered by three banks Quotation Bank A (GBP/USD) Bank B (MYR/USD) Bank C (GBP/MYR) 1. 11. BID 1.6 0.2 8.2 ASK 1.62 0.202 8.1 Is the triangle arbitrage visible? if you invest $100,000 what will be your profit? Can the investors' starts from MYR? Justify

Entrepreneurial Finance
6th Edition
ISBN:9781337635653
Author:Leach
Publisher:Leach
Chapter8: Securities Law Considerations When Obtaining Venture Financing
Section: Chapter Questions
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Need help with this exercise, with clear formula please
c) Bid-ask rates offered by three banks
Quotation
ASK
Bank A (GBP/USD)
1.62
Bank B (MYR/USD)
0.202
Bank C (GBP/MYR)
I.
11.
BID
1.6
0.2
8.2
8.1
Is the triangle arbitrage visible? if you invest $100,000 what will be your profit?
Can the investors' starts from MYR? Justify
Transcribed Image Text:c) Bid-ask rates offered by three banks Quotation ASK Bank A (GBP/USD) 1.62 Bank B (MYR/USD) 0.202 Bank C (GBP/MYR) I. 11. BID 1.6 0.2 8.2 8.1 Is the triangle arbitrage visible? if you invest $100,000 what will be your profit? Can the investors' starts from MYR? Justify
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