The following bid-ask rates are offered by three banks: Bid - Ask Bank O SGD/AUD 1.01...

Question

Question

The following bid-ask rates are offered by three banks:

Bid - Ask
Bank O SGD/AUD 1.01 1.06
Bank P AUD/MYR 3.30 3.40
Bank Q SGD/MYR 3.05 3.25

Calculate the triangular arbitrage by starting with MYR1000.

Answer 1

Answer #1

triangular arbitrage by starting with MYR1000 is "25.54MYR"

Answer 2

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