Find the triangular arbitrage profit available to someone

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Reference no: EM132040168

Use the following information to answer the next two questions.

The euro/US dollar exchange rate is $1.6/€ while the Canadian dollar/US dollar exchange rate is C$1.25/$. You also observe that the actual euro/Canadian dollar cross exchange rate is €.65/C$.

Find the triangular arbitrage profit (in USD) available to someone that has access to $1,000,000. Round intermediate steps to four decimals and your final answer to two decimals. Do not use the dollar sign when entering your answer.

Reference no: EM132040168

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