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Economics

Assume the following information:

Quoted Price

Value of Canadian dollar in U.S. dollars $.90

Value of New Zealand dollar in U.S. dollars $.30

Value of Canadian dollar in New Zealand dollars NZ$3.02

Given this information, is triangular arbitrage possible? If so, explain the steps that would reflect triangular arbitrage, and compute the profit from this strategy if you had $1,000,000 to use. What market forces would occur to eliminate any further possibilities of triangular arbitrage?

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91720282

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